When you ask people about the different topics that they want to think about, you will probably find the topic of life insurance among the last items of their list. It is a fact. Almost nobody wants to think about or rather yet, talk about life insurance. One reason for this is that life insurance is associated with the thought of a person dying and since nobody wants to think about dying, they do not want to think about anything associated with it either. Another reason that people shun away from discussions about life insurance is because of the confusing terminology that goes along with it.
At the same time, even if one is willing to listen, it will not be easy to explain. The terminologies are one big barrier, but more than that, the misconceptions, which have taken root in people's mind about life insurance policies are the main obstacle. Let us now talk about few such myths, which need to be debunked at all cost.
If you do not have any dependent, you will not need any coverage - It is true that life insurance policies were first conceived to protect the family members from pecuniary hardship should the main breadwinner die a premature death; even today most people buy such policies for protection of their families. However, that does not mean people without dependents do not need a policy. Who else is going to pay for the funeral expenses or the bills they are one day going to leave unpaid? Such people should get a low cost term life insurance to cover their funeral cost as well as the unpaid bills.
Employer sponsored policies are enough: These days, most employers provide group insurance for their employees. More than that, they are today required to indemnify loss of a personnel's life, especially in case the death is work related. However, most of the time, the coverage is too small for the need of the family. Ideally, the proceeds from a life insurance benefit should replace the income earned by the deceased; but an employer sponsored policy can hardly do that. Therefore, even if you are covered by employer sponsored policy, buy additional coverage to make life comfortable for your family.
Only those who are old enough need life coverage: First, it is not necessary that only older people will die. Terminal diseases or freak accidents can also make a younger person depart sooner than is expected. Just imagine, what will happen to your family if you die without leaving any legacy for them. What is more, if you wait too late to get a life insurance coverage, you will have to pay at a very high rate. Indeed, if you compare quotes life insurance rates are found to be higher as one progress in age.
There is only one type of life insurance policy: More often than not we buy what our financial advisors suggest. Indeed, few of us are aware that there are different types of policies, each with different price tag and offering different types of coverage. That is why we often end up with the wrong kind of policies. Those who want plain life insurance coverage with lowlife insurance rates often are forced buy more expensive cash value policy. Indeed, before you buy any policy at least compare life insurance quote on line and then make an informed choice.
Myth 5. Purchasing a policy is too much trouble and time consuming. A lot of times, people forgo purchasing a policy because they think that doing so will mean that they have to set aside a lot of time to listen to insurance agents explain all the terminologies, have to undergo a medical exam and wait for a while to be accepted or granted a policy. Traditionally, this is how a policy is purchased. However, because of the advances in technology, you can purchase a no medical exam life insurance policy on line. Nowadays, a person simply has to visit a website of an insurance company, enter his/her personal data, honestly disclose his/her medical background, choose the amount of coverage that he/she prefers, wait a few minutes then he/she will already receive a life insurance quote on line.
Not knowing the truth about life insurance policies may cause a person to avoid purchasing one. It is better to debunk all the myths about insurance to have a better understanding of it.
At the same time, even if one is willing to listen, it will not be easy to explain. The terminologies are one big barrier, but more than that, the misconceptions, which have taken root in people's mind about life insurance policies are the main obstacle. Let us now talk about few such myths, which need to be debunked at all cost.
If you do not have any dependent, you will not need any coverage - It is true that life insurance policies were first conceived to protect the family members from pecuniary hardship should the main breadwinner die a premature death; even today most people buy such policies for protection of their families. However, that does not mean people without dependents do not need a policy. Who else is going to pay for the funeral expenses or the bills they are one day going to leave unpaid? Such people should get a low cost term life insurance to cover their funeral cost as well as the unpaid bills.
Employer sponsored policies are enough: These days, most employers provide group insurance for their employees. More than that, they are today required to indemnify loss of a personnel's life, especially in case the death is work related. However, most of the time, the coverage is too small for the need of the family. Ideally, the proceeds from a life insurance benefit should replace the income earned by the deceased; but an employer sponsored policy can hardly do that. Therefore, even if you are covered by employer sponsored policy, buy additional coverage to make life comfortable for your family.
Only those who are old enough need life coverage: First, it is not necessary that only older people will die. Terminal diseases or freak accidents can also make a younger person depart sooner than is expected. Just imagine, what will happen to your family if you die without leaving any legacy for them. What is more, if you wait too late to get a life insurance coverage, you will have to pay at a very high rate. Indeed, if you compare quotes life insurance rates are found to be higher as one progress in age.
There is only one type of life insurance policy: More often than not we buy what our financial advisors suggest. Indeed, few of us are aware that there are different types of policies, each with different price tag and offering different types of coverage. That is why we often end up with the wrong kind of policies. Those who want plain life insurance coverage with lowlife insurance rates often are forced buy more expensive cash value policy. Indeed, before you buy any policy at least compare life insurance quote on line and then make an informed choice.
Myth 5. Purchasing a policy is too much trouble and time consuming. A lot of times, people forgo purchasing a policy because they think that doing so will mean that they have to set aside a lot of time to listen to insurance agents explain all the terminologies, have to undergo a medical exam and wait for a while to be accepted or granted a policy. Traditionally, this is how a policy is purchased. However, because of the advances in technology, you can purchase a no medical exam life insurance policy on line. Nowadays, a person simply has to visit a website of an insurance company, enter his/her personal data, honestly disclose his/her medical background, choose the amount of coverage that he/she prefers, wait a few minutes then he/she will already receive a life insurance quote on line.
Not knowing the truth about life insurance policies may cause a person to avoid purchasing one. It is better to debunk all the myths about insurance to have a better understanding of it.
About the Author:
Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on life insurance and seguro de vida, visit his site today.
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