Probably one of the topics that most people avoid in conversations is about life insurance. How many times have you tried to avoid dealing with an agent offering you life insurance policies? I’m probably guessing that it is a lot. Do not worry, you are not rude. A lot of other people feel the same way and also avoid insurance agents. This is because most people avoid life insurance topics because they are associated with death and a person’s mortality. It is inherent for us humans to avoid topics dealing with death and therefore it is but normal to avoid life insurance conversations.
Nevertheless, life insurance is a topic that should be discussed sooner than later so that we will not regret not having one in the future. A life insurance policy is important because it will serve as the replacement income that will be lost in case of an unexpected death of a person or if that person becomes incapable of working due to an accident. Therefore, in order to make people understand more about life insurance, here are some myths about it that must be busted first.
Myth 1. Those with families needing their income for survival are the ones who must take life insurance. This is mostly true since all life insurance policies are sold to protect the dependents of the policyholder – often wife and kids – especially if the holder dies in his prime. However, this is not always the case for there are single people who can also take life insurance. An unmarried person who owns a business can take life insurance that will protect his employees and keep his business running for sometime when he dies. He can also take a policy to payoff outstanding debts like medical bills. He can also use it to take care of parents in case he dies before them and wants to provide for their old age.
Myth 2. If you already have employee life insurance, this is more than adequate to protect your dependents. According to the state laws in the US, all employers must take life insurance policies for their employees and make sure they protect them especially from any loss of life or injury that is work related. This coverage however is not enough for employers often get cheap term life insurance quotes that may not be enough to take care of all the financial needs of a family. Besides, the employer’s life insurance is only effective until the person works for the company. Once he leaves the company or he is terminated, even his life insurance policy will be stopped.
Myth 3. “I am young and only need to think of insurance when I am old”. This is one of the greatest misconceptions that need to be busted. It is true that life insurance is available for people of all ages. However, have you seen the cost of insurance as a person gets older? Only if you get life insurance quotes when you are young can you save money for they will be cheaper. When calculating insurability, underwriters give top priority to age and health condition. A younger person is by default healthier and expected to live longer than an older person. Hence, when you compare term life insurance quotes, you will find that it is affordable for younger people that older folks.
Myth 4. Any life insurance policy will do. There are different life insurance policies out in the market today and they differ from each other. The two main types of policies are the permanent life and the term life. Each type of policy has its own advantages and disadvantages and therefore a person must carefully consider each type of policy and decide which one will be best suited for the needs of his/her family.
Myth 5. I need life insurance but do not have the time to apply for one. Several years ago, this fallacy was true for there was no Internet and people had to spend time visiting insurance companies. They also had to wait for the complete underwriting procedure to be finished that included filling out several forms and waiting for a thorough medical exam result to be submitted. Only then will a person be declared insurable or not. These days, those who want to can apply for life insurance online and complete the entire process without leaving their desks and within quick time.