Believing in myths and acting accordingly is the single cause of many of our woes. In the insurance sector too, you will find many myths going around influencing people's decisions in the wrong way. If we want our family secured we must try to debunk those myths and see the truth behind it. For example, it is said that for protection of life term life insurance is the most suited policy. While there is some truth in it, can we actually take it as the ultimate one? Let us look into various myths and try to throw light on them.
Buying a policy is not only time-consuming, but rather stressful too - How much that is true depends upon what you consider stressful; but fully underwritten term life policies do take four to six weeks to finish their underwriting process. The purchase procedure generally begins with receiving term life insurance quotes; you should receive multiple of them and then choose the one most compatible to your profile. Making an official application comes next; it involves filling up a detailed form. Once that is accepted, you need to appear for a medical test and answer some lifestyle related question. The underwriting process starts only after that and so you need to wait for weeks to receive the coverage.
Nowadays, a person can purchase a policy in just a few minutes. This can be achieved by availing of the no medical exam term life insurance policy on line. A person who wants to purchase a policy will simply need to choose the amount of coverage he/she wants, choose the length of term he/she wants to be covered, and then fill in a questionnaire about his/her personal and medical information. An application within the website will then compute for the amount of premiums that the person will pay on a regular basis.
Unemployed spouses do not require coverage: It is true that the main usage of a term life is to cover the financial responsibilities of the insured. If your spouse does not have any income, he or she does not actually need such coverage. However, it does not mean that they can do one either. You must get one to cover his or her funerals and other sundry expenses. Some also cover unemployed spouses to cover household works in his or her absence.
For most a life insurance policy is too expensive to afford - In most cases, people who live uninsured do that because they find the policy prices out of their reach. However, the facts speak differently. Firstly, there are indeed some expensive policies, but they are mostly cash value policies that provide an investment opportunity along with the usual life insurance benefits. If you are indeed looking for a cheap life insurance, you should always opt for pure policies such as a term life. What is more, a term life can also be expensive if you have medical condition or use tobacco in any form. Larger coverage too may increase the price. However, one should not lower that for sake of lower rates. Ideally, the coverage amount should be ten times your annual salary before tax.
Myth 4. Term life is always better than permanent life insurance. This belief will really depend on the person purchasing the insurance. If the person wants to have a less expensive policy, then the term life insurance is ideal for him/her. A permanent policy on the other hand is beneficial and ideal to persons who have higher budget since this policy can also be used as an investment tool. Another advantage of a permanent life is that you are allowed to vary the amount of premiums that you pay in a year which is ideal for a person with fluctuating income. Another advantage of a permanent policy is that you are allowed to borrow against your policy an equivalent amount of money which you can use while you are still alive.
Myth 5. You cannot tweak your life insurance policy. People have different situations in their lives and therefore they have different needs when it comes to insurance policies. A person can purchase the basic policy and then add riders in order to tailor fit their policies to the needs of their family. Riders are additional benefits which you can purchase as an add-on to your basic policy. For example, you can purchase a rider so that your wife may be covered as well. This will convert your basic insurance to a multi-coverage one.
In short, do not take anything on its face value; go deeper to learn the truth. That is the only way you can buy adequate coverage at a reasonable rate.
Buying a policy is not only time-consuming, but rather stressful too - How much that is true depends upon what you consider stressful; but fully underwritten term life policies do take four to six weeks to finish their underwriting process. The purchase procedure generally begins with receiving term life insurance quotes; you should receive multiple of them and then choose the one most compatible to your profile. Making an official application comes next; it involves filling up a detailed form. Once that is accepted, you need to appear for a medical test and answer some lifestyle related question. The underwriting process starts only after that and so you need to wait for weeks to receive the coverage.
Nowadays, a person can purchase a policy in just a few minutes. This can be achieved by availing of the no medical exam term life insurance policy on line. A person who wants to purchase a policy will simply need to choose the amount of coverage he/she wants, choose the length of term he/she wants to be covered, and then fill in a questionnaire about his/her personal and medical information. An application within the website will then compute for the amount of premiums that the person will pay on a regular basis.
Unemployed spouses do not require coverage: It is true that the main usage of a term life is to cover the financial responsibilities of the insured. If your spouse does not have any income, he or she does not actually need such coverage. However, it does not mean that they can do one either. You must get one to cover his or her funerals and other sundry expenses. Some also cover unemployed spouses to cover household works in his or her absence.
For most a life insurance policy is too expensive to afford - In most cases, people who live uninsured do that because they find the policy prices out of their reach. However, the facts speak differently. Firstly, there are indeed some expensive policies, but they are mostly cash value policies that provide an investment opportunity along with the usual life insurance benefits. If you are indeed looking for a cheap life insurance, you should always opt for pure policies such as a term life. What is more, a term life can also be expensive if you have medical condition or use tobacco in any form. Larger coverage too may increase the price. However, one should not lower that for sake of lower rates. Ideally, the coverage amount should be ten times your annual salary before tax.
Myth 4. Term life is always better than permanent life insurance. This belief will really depend on the person purchasing the insurance. If the person wants to have a less expensive policy, then the term life insurance is ideal for him/her. A permanent policy on the other hand is beneficial and ideal to persons who have higher budget since this policy can also be used as an investment tool. Another advantage of a permanent life is that you are allowed to vary the amount of premiums that you pay in a year which is ideal for a person with fluctuating income. Another advantage of a permanent policy is that you are allowed to borrow against your policy an equivalent amount of money which you can use while you are still alive.
Myth 5. You cannot tweak your life insurance policy. People have different situations in their lives and therefore they have different needs when it comes to insurance policies. A person can purchase the basic policy and then add riders in order to tailor fit their policies to the needs of their family. Riders are additional benefits which you can purchase as an add-on to your basic policy. For example, you can purchase a rider so that your wife may be covered as well. This will convert your basic insurance to a multi-coverage one.
In short, do not take anything on its face value; go deeper to learn the truth. That is the only way you can buy adequate coverage at a reasonable rate.
About the Author:
Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on life insurance no exam and seguro de vida, visit his site today.
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