13 Feb The 5 Biggest Life Insurance Myths Debunked

Now more than ever, life insurance has disrupted the insurance and finance industry. It’s controversial, it’s nuanced, and it’s mounds of confusing paperwork. Unless you’ve worked in the industry or scrupulously researched different policies, you might be in the dark regarding life insurance policies and what they mean for you. Here are the 5 biggest life insurance policy myths debunked.

Myth 1: Life insurance is only for people with dependents

This assumption is vastly untrue. You don’t have to have children or dependents to qualify for life insurance. Whole, term and universal life insurance provides peace of mind for those with debt, such as student, credit card, or mortgage debt. Also, it’s beneficial when covering final expenses, ranging from funeral costs and medical bills to legal fees. It might also supplement lost income for stay-at-home partners or provide a financial safety net in your retirement years, like in the case of whole life insurance.

Lastly, if you feel you would like to leave a legacy behind, consider donating to charities or institutions you care about. You can add these as beneficiaries in your will, and leave your life insurance payout to them.

Myth 2: Life insurance is too expensive

The truth is, that the cost depends on your age, health, and desired coverage amount. Term life insurance, offering coverage for a specific period, can be very affordable, especially if you start young. Credit Boost life insurance is affordable. Contact our insurance professionals for a personalised quote.

Myth 3: I’m too young and/or healthy to need life insurance

You may be young and healthy, but this doesn’t exempt you from the need to plan for your future. True, you face a lower risk of unexpected death, but accidents can still happen. Securing affordable coverage early locks in lower premiums and guarantees coverage even if your health changes later.

Myth 4: My employer’s life insurance is enough

This is false. Typically, employer-sponsored life insurance plans offer limited coverage and may be discontinued should you change jobs. Consider a personal policy to supplement existing coverage and guarantee protection regardless of employment.

Myth 5: Investing is a better alternative to life insurance.

While investing to accumulate wealth is important, life insurance offers unique benefits:

• Guaranteed payout. The market fluctuates, but life insurance doesn’t. This ensures you claim a payout at the end of life or when you need to claim.
• Tax advantages. Claiming a death benefit is tax-free for beneficiaries.

As outlined, the myths surrounding life insurance are false. Be sure to contact us if you have any other queries regarding life insurance and what it can do for you and your family.