5 Myths about Life Insurance Uncovered
Life is uncertain. The risk associated with an untimely death cannot be eliminated. For this purpose, it is imperative to invest in a life cover. Purchasing such a plan offers peace of mind as your family’s financial needs will be taken care of in your absence. Your beneficiary or nominee will receive the death benefit amount, which may be used to pay off outstanding debt, replace income, meet last-rite expenses, and day-to-day expenses, among others. Besides, a life cover facilitates long-term savings that may be used to meet your financial goals such as retirement planning or children’s education.
Many individuals have pre-conceived notions about life insurance policies. It is necessary to clear such myths and make a well-informed purchase decision. Following are five major myths about life cover plans.
- Coverage is needed only for those with dependents
Every individual needs a minimum level of coverage to meet certain costs such as outstanding debts and medical and funeral bills. Though you may not have any dependents to take care of, you certainly need an insurance coverage to cater to your retirement and health needs in the future.
- Young individuals need not invest in a life insurance policy
Many people often believe that life insurance policies are meant for those in the older age bracket. However, this is not true. Due to the rise in the number of lifestyle diseases and accidental deaths, individuals belonging to all age brackets need adequate coverage. The good news is that insurance providers offer lower premiums to younger individuals, thus helping you enjoy the benefits of life insurance at reduced costs.
- Life insurance only offers coverage against death
It is true that life policies provide a predetermined amount to your beneficiary in case of an unfortunate death. However, it serves numerous other purposes as well. It aids in systematic savings and helps you build wealth for the future. You may use the amount to meet your various needs such as securing your spouse’s future, meeting liabilities, children’s wedding, and retirement planning, among others.
- Only sole breadwinners may invest in a life cover
A life cover is needed for each and every member of your family, whether it is a dependent or a breadwinner. Such a plan helps offset the risk of financial loss for a homemaker, aging parents, children, or your partner. It is, therefore, recommended to buy a life cover for all members of your family.
- Group insurance is adequate
Many employers provide coverage to their employees under group plans. Individuals are led to believe that such a cover is adequate. Group plans, however, are not customized according to individual needs and requirements. Besides, a job change or termination will result in a loss of cover. You may, therefore, invest in an individual plan.
Many individuals have pre-conceived notions about life plans. It is important to dispel such myths before purchasing a life cover.
You may either buy a life cover by visiting your local branch or through the insurer’s website. You may buy life insurance online as it provides a plethora of benefits. Buying through the Internet provides a high degree of convenience and flexibility. Besides, you may avail of lower premiums due to the absence of intermediaries and reduced paperwork cost. The other option is to go for term plan. Term assurance is life insurance that provides coverage at a fixed rate of payments for a limited period of time, the relevant term. So, go ahead and secure your and your family’s financial needs by investing in a life insurance policy as early as possible.