False Myths About Life Insurance

False Myths About Life Insurance

From the Editor: This is a guest article by Denise Mancini

In spite of people having access to so much information in the Internet-savvy age we live in, some people still have misconceptions about life insurance. Here are a few myths you might have unknowingly subscribed to:

Myth 1: You can’t get life insurance if you are not in the best of health.

False. There are life insurance companies that specialize in life insurance policies for those with unsatisfactory health conditions or lifestyles. You may not get the cheapest life insurance rates, but these companies will work with you in order to accommodate your needs. If you’re health is seriously affected making you ineligible for any type of life insurance policy, there are life insurance companies that offer no-medical exam life insurance offering a maximum coverage of up to $300,000.

Myth 2: A stay-at-home-spouse doesn’t need life insurance

False. A stay-at-home-spouse makes a tremendous financial contribution to the family income, though these services are often unaccounted. Think about how many services you would need to employ if your stay-at-home spouse were absent. You may need to hire a cook, a housekeeper or pay for daycare for your children. You may need to cut down your working hours in order to spend more time with your kids. Insuring your spouse would provide you with death benefits to meet those extra payments and cut down on your working hours if you need to. Salary.com combined all the functions of a stay-at-home spouse and assigned a value to each. The total income of a stay-at-home spouse was valued at around $138,000!

Myth 3: All life insurance policies are the same

False. All life insurance policies are not the same and you need to take a good look at each policy to find out which one suits your life insurance needs the best. Each life insurance company has a different set of underwriting rules, so you’ll find a difference in life insurance rates. Some may offer options like renewability or waiver of premiums which are worth considering. Look for free riders and compare terms and conditions as well.

Myth 4: Getting life insurance is complicated!

False. Online shopping for life insurance offers convenience, speed and savings! There are many life insurance quoting and brokerage firms, representing the best-rated life insurance companies. All you need to do is answer their online questionnaire and they’ll provide you with instant life insurance quotes for side-by-side comparison to help you find the best values in life insurance. These aggregator websites provide you with clear-cut, unbiased information on life insurance and how you can take advantage of competitive rates. They also offer a personalized approach to purchasing life insurance by providing licensed life insurance professionals who can answer any of your individual queries on life insurance. In contrast, agents have a smaller portfolio and may “push” you to buy policies that may not be beneficial to you.

Myth 5: I have life insurance through my workplace so I don’t need to purchase more

False. The life insurance offered by your workplace may offer nominal coverage, which many not be enough to meet your life insurance needs. You don’t want your family to be inadequately insured and suffer financial hardship after your die. Another disadvantage to workplace life insurance is that it is

terminated when you leave the job. It’s best to compensate for the inadequacy of workplace life insurance through an individual life insurance policy which would remain in effect irrespective of your job.

Myth 6: I don’t have any dependents, I don’t need life insurance.

False. Some people think that if you don’t have a family to support, you don’t need life insurance. You definitely need to be insured if anybody relies on your income for their livelihood, but those who are still single may have debts to pay off which they have co-signed with a parent, friend or relative. A life insurance policy would help ensure that that debt doesn’t fall on somebody’s shoulders, if you should die unexpectedly.

Myth 7: Life Insurance is expensive.

Life insurance rates have actually come down in the past decade as life spans have increased. Internet shopping has also spurred competition within the life insurance industry. Seniors in their 50s and 60s have a good chance of finding a cheap life insurance, if they feel they need life insurance to augment their retirement fund for a surviving spouse.

Get going!

So, what are you waiting for? Go ahead, get instant online life insurance quotes and search the Internet for the best values. It’s never been easier to buy life insurance!





Insurance: A Guide

"Remember kids, I have life insurance" - Adam Savage

This is a guest article from Tatyana Levin

These days one must be financially savvy. Money is not easy to come by and should be managed carefully. With the availability of tools that make it easy to keep track of current events, the stock market, and even your own money, it would be almost a crime to not utilize these tools to make the best and most informed financial decisions. Unfortunately, the more there is, the more there is to keep track of. This applies both to tracking tools and money (the small curse within the comfort of having money to keep track of).

 The savvier ones of us dabble in investments, and the savviest make their living that way. The key is that they know what to invest in. Not magically, of course; investors do a significant amount of research to learn how to optimize their portfolios, but they have the understanding.

A grossly overlooked investment is insurance. This may be because is not typically referred to as an investment with the exception of whole life insurance that has a specific investment component within it. Webster’s defines the word “invest” as a commitment of money for a return and “insurance” as a guarantee. This makes insurance the safest type of investment, because your returns are guaranteed.  But returns are not always financial in the case of insurance. They can be, if there is an unforeseen accident, but the most certain return is the feeling of security.

Now there are many different types of insurance, and what you need depends on your current situation. Obviously you only need auto insurance, found using auto insurance leads if you have a car, and you only need renter’s insurance if you rent and have possessions that you would need insured. Insurance is for those who have something to lose. With an attachment to something, either emotional of physical (or dependence, not like physically being glued to your car), comes the fear that it will be damaged or ruined in some way. For example, if your house caught on fire, you would be devastated. What would add insult to injury is not having a way to recover from this horrible disaster.

 These types of examples are not unique to this article. That is the way that insurance is sold. As they say that clichés are clichés for a reason, insurance is promoted this way for a reason.  The foundation of the concept of insurance is uncertainty, and it is the same uncertainty that is conjured up when investing.

The main difference between insurance and investment is that not having insurance creates a feeling of uncertainty while investments by nature are uncertain. Therefore, investing in insurance creates security and is the only secure investment that exists (and is legal). Getting insurance should be one of the easier financial tasks if you apply all the resources available with technological advances like smart phones.

About the Author: This article was written by Tatyana Levin, a copywriter for InsuranceFiles.com