Misconceptions about life insurance

Misconceptions about life insurance

Oh! I am just 26, why do I need insurance?

Is life predictable? No. It isn’t. There are many people in the age group 25-44 and pass away unexpectedly, leaving their family in crisis. So, life insurance can provide valuable security and peace of mind for your loved ones, and you’ll save money on your premium if you buy a policy when you’re young.

No! No! Insurance is too expensive.

With numerous companies in the market today you can easily find a policy that meets your needs and your budget. For instance Term life insurance can be especially affordable, with some monthly premiums costing less than a pair of movie tickets. Hence the perception that most of us have about insurance is simply a wrong myth.

I don’t work and so I don’t need insurance and I cannot buy it either.

You might not be earning but remember you extend priceless support to your family and loved ones. Life insurance cannot replace your efforts but it certainly can help to ease the financial burden on your family. Your life insurance policy can be used to pay off any outstanding debts, to provide a stream of income for your loved ones to live on, and even to pre-fund your child’s college education. So get insurance for yourself as you are extremely valuable to someone.

Have you seen my savings? There are huge so I don’t need insurance.

Financial planners believe that you should have enough insurance coverage to replace 5-7 years of your salary – 10 years, if you have kids or a significant amount of debt. Even if you do have that much saved in the bank, your loved ones could be hit with an estate-tax payment of up to 45%, and your accounts may be temporarily frozen upon your death. Life insurance can help to guard your family against unnecessary financial hardship and stress.

Dear I am pretty old now. I don’t know how long will I live. So I don’t need insurance.

Retired and lost the company coverage? Don’t worry. Many companies provide life insurance policies to seniors at affordable rates.

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