Insurance can help you secure your financial future. Several options are available to help you build a corpus that allows you to be financially independent upon retirement, cover unreasonable medical expenses or build up your fortune. Buying life insurance is a big decision that is often clouded by myths. Many people think they do not need it. Here are some of the most common life insurance myths and facts that dispel them.
- Life insurance is only useful after my death.
It is a common misconception that life insurance is useful only after someone dies. In reality, life insurance provides many other benefits that can be used to cover expenses if you become disabled or ill, making you unable to work.
- My company covers me. I do not need any other policy.
Only when you are employed by a company is your employer responsible for you. When you retire or retire, the insurance ends. The organization can terminate the insurance or limit the benefits if there are financial difficulties. Buy an independent policy that allows you to maintain your standard of living while providing financial security for your family in the event of your death.
- I am young, single and healthy. I do not need insurance.
Life insurance is most relevant when you have an urgent need for it. Even if you do not feel that your current situation requires it, as many people are inclined to believe, there are always risks and dangers that can arise without warning. The best time to buy a life insurance policy is when you are young because the premiums are lower and you can get a lot of coverage for a small amount of money.
- Life insurance is expensive for me.
Life insurance premiums are adjustable to reflect your price level. The premiums are generally cheap for people in the younger age groups and you can also get a lot of coverage in return.
- Time insurance is the only form of life insurance.
Time insurance is just one of many products available to protect against the risk of premature death. Life insurance companies offer a variety of products such as traditional savings, unit-linked insurance and pension products.
- I am not entitled to obtain insurance because I am too old or have an existing condition.
Insurance premium rates will need to be adjusted to reflect the higher risk when dealing with age and medical issues that are outside the median. However, it does not deprive you to buy life insurance.
- Other investments will give me a higher return than life insurance.
Some life insurance policies include an investment-like cash value feature that earns interest over time. They are often marketed as a smart way to get life insurance while saving for retirement.
- ULIP is not a good investment due to the high costs.
The long-term benefits of ULIP include both protection and wealth building. Modern ULIPs have very minimal fees, and some of them even cover mortality or other deductions made during the term of the insurance when it falls due.
- The insurance can only be in the name of the person who buys it.
Anyone over the age of 18 who has a regular source of income and is not a minor can purchase insurance in their name or the names of their spouse or children. Some insurance companies provide a joint insurance policy that covers spouses under a single insurance policy.
- Claims settlement is a hassle and the insurance company can refuse or withhold part of the payment.
A payment will be processed if a valid claim is submitted. In addition, the premiums must be paid regularly in order for the insurance to remain valid. Insurance companies are constantly implementing digitization in all their processes, including the claims process, to make it more efficient.
Insurance is an important investment, do not let these common myths convince you otherwise. Each family and individual has unique financial requirements. What works for one person may not work for another. Contact us to consult with one of our insurance advisor experts at Abbate Insurance Associates Inc. today to find the best plan for you and your family.