September 23, 2022
  • September 23, 2022

Common life insurance myths you can’t afford to fall for

By on August 30, 2022 0

Image source: Getty Images

Believing in these misconceptions could lead to regrets.

Key points

  • Life insurance is a very important purchase.
  • Many people fall into myths that prevent them from being covered.
  • Contrary to popular belief, life insurance can be affordable, and you don’t have to be in perfect health to purchase insurance.

Life insurance is one of the most important purchases a person can make. But unfortunately, some people are deterred from getting a policy they need because they fall into some common misconceptions. To avoid this, it’s important to know the facts about these four big life insurance myths.

Myth #1: You don’t need insurance if you don’t have dependents

One of the biggest misunderstandings about life insurance is that it’s only important to buy coverage in circumstances where there are dependents dependent on the potential policyholder’s income.

Here’s the reality: Many people end up with someone who depends on them for income or services. It can be a spouse, children or aging parents. And a person waiting to have dependents could develop a pre-existing condition. before they get coverage which ends up making it much harder to get an affordable policy.

This is why young people should take out insurance when they are still young and healthy, even if no one “needs” it yet. By getting coverage in place early, they can protect their loved ones in the future.

And even those who never end up with others who depend on them may still want to put a policy in place to ensure their funeral can be paid for without others having to bear the financial burden of their expenses. finals.

Myth #2: Insurance is expensive

Another big misconception is that life insurance is expensive. In reality, it is usually very affordable to purchase a term life insurance policy. This is especially true if purchased at a younger age, but even older people can still be covered for a reasonable sum, especially after shopping around for coverage.

Plus, while it may seem expensive to pay premiums, a policy can provide peace of mind and save surviving loved ones from financial disaster in the event of an untimely death, so it’s usually worth buying. to be paid.

Myth #3: Term insurance policies are a waste of money

One of the main reasons many people are not covered is because they mistakenly believe that term life insurance policies are a waste of money. This misperception stems from the fact that the policy will only pay out if death occurs during the term of coverage. It may seem like a waste to have paid premiums for 20 or 30 years, but no death benefit has been paid out at the end.

These bonuses are not a waste, however. They protect against the risk of an untimely death that could financially devastate surviving loved ones. The best-case scenario is that coverage won’t be needed – just like the best-case scenario for car insurance is that no car accident occurs. But it’s still important to have cover in place in case something goes wrong.

Myth #4: You need perfect health to be covered

Finally, a final myth that keeps people from buying life insurance is the mistaken belief that only perfectly healthy people can buy a policy. The reality is that almost anyone can find some sort of coverage, even if it’s just a guaranteed issue policy.

Rather than fall into these myths, shop around for life insurance and research all available options to make sure misconceptions don’t get in the way of important protections for loved ones.

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