Do you have a contingency plan that can protect your family just in case something bad happens to you? Assuming you are the main income earner in your family, it will be difficult for your loved ones to pay for school, food and other amenities in the event you pass away. Let’s be honest, it’s a rather scary thought. If you don’t have life insurance ready, you could be leaving your family in serious financial distress. Having life insurance can help support your loved ones.
However, if you’re not familiar with life insurance policies, it can be difficult to distinguish what is true about life insurance and what is a myth. To help clear up confusion, here are some common myths about life insurance.
Life insurance is too expensive
To the uninformed, life insurance can seem costly, but this is one myth that can be debunked. The cost of a life insurance policy varies, as it depends on several factors such as your entry age and medical history. Life insurance costs less than what most people think. Depending on your situation, you can tailor your insurance and lessen your costs drastically. Keep in mind that insurance is cheaper when you’re young, as you get older, premium prices become higher.
If your employer provides coverage, it’s enough
While many companies do provide employees with life and health insurance, this benefit only lasts as long as you are still employed under that company. While you’ll be covered, this coverage is only temporary and the benefit that is put into your insurance policy isn’t much. Furthermore, the policyholder in this case is your employer which means they reserve the right to amend the terms of coverage with their chosen insurer. This leaves you with uncertain coverage.
It’s advisable to separately apply for your personal life insurance plan to ensure that your family will be able to receive additional funding long after you are no longer able to provide for them. Additionally, you’ll have peace of mind knowing that your loved ones have a reliable means of obtaining funds in the future.
Life insurance is only for those who have children
If you’re not married and don’t have any children, it’s still important to seriously consider getting life insurance. Keep in mind that you still have dependents—your parents or siblings, for example, could from life insurance, as it can still cover other costs such as funeral expenses, unpaid bills and debts. If you were to unexpectedly pass away without a life insurance plan, your loved ones will be left to pay for these costs. So, even if you’re single, do consider obtaining life insurance as early as possible.
My health condition can exclude me from getting life insurance
Even if you have health conditions you can still have life insurance, although you may need to purchase a policy with lower coverage limits. Essentially, life insurance isn’t restricted to people of a certain age, health or even salary. You can always adjust your policy based on all these factors. There are plenty of insurance options that can suit your needs and budget.
These are just some of the many myths about life insurance which can make it difficult for people to fully understand and appreciate it. This often leads to confusion for some people on whether they need insurance or not. While the idea of having life insurance seems intimidating, doing so will bring plenty of benefits for your loved ones.