As with most subjects that we are not clued up with, we tend to believe everything we hear about life insurance.
Life cover is probably one of the least understood factors of financial planning.
A sad fact if you think just how crucial life insurance really is! To avoid becoming a victim to one of the various myths and misconceptions about life cover, you might want to have a look at the following lies and false impressions: Misconception number 1: I will probably not need life insurance; therefore I will not waste my money on it.
Remember that life cover works in two ways: You can take it out to protect your loved ones when you're no longer there, or you can take out a policy to cover yourself in the event that you become seriously ill or disabled and unable to work.
Gambling with life insurance is like playing the lotto...
Sometimes you may win a bit...
and sometimes you may lose a lot! Misconception number 2: The more expensive the life cover policy, the better! This is not necessarily true.
If you acquire your policy while you are still young, you are seen as a low-risk client and your monthly premiums will be very low.
Other factors such as your health and your lifestyle also play a role on your premiums.
If you are a chain smoker who also enjoys hard liquor every weekend, you will most definitely not be offered the same premium as a healthy, active individual.
Misconception number 3: It is such a mission to obtain life insurance! No, not anymore! Gone are the days of having to drive to insurance companies and spending hours in a queue until a consultant could finally see you.
It is now possible to get a quote from the comfort of your own home by picking up the telephone or using your computer.
Most companies allow you to do all your paperwork online, and in the event that they require further information, they will call you, not the other way around! Misconception number 4: My wife does not work, so she does not earn an income and therefore she does not need to take out a life cover policy to take care of me once she's no longer there.
Even though it might be true that the wife is not contributing financially to the household, she is contributing through means of cleaning the home, cooking, taking the children to school and to other activities.
Once she's not there anymore, this will become the dad's responsibility and he might not be geared for all of the above demands and would need some additional help.
That's where mom's policy will take care of dad.
Misconception number 5: The cheapest life insurance policies can always be found through the internet.
Not necessarily.
Even though companies can cut out a lot of agent or broker commissions when making their policies available online, it is still necessary to compare a number of quotes before you make your investment.
I hope the above information was able to clear up some common misconceptions on what life insurance is all about!
Life cover is probably one of the least understood factors of financial planning.
A sad fact if you think just how crucial life insurance really is! To avoid becoming a victim to one of the various myths and misconceptions about life cover, you might want to have a look at the following lies and false impressions: Misconception number 1: I will probably not need life insurance; therefore I will not waste my money on it.
Remember that life cover works in two ways: You can take it out to protect your loved ones when you're no longer there, or you can take out a policy to cover yourself in the event that you become seriously ill or disabled and unable to work.
Gambling with life insurance is like playing the lotto...
Sometimes you may win a bit...
and sometimes you may lose a lot! Misconception number 2: The more expensive the life cover policy, the better! This is not necessarily true.
If you acquire your policy while you are still young, you are seen as a low-risk client and your monthly premiums will be very low.
Other factors such as your health and your lifestyle also play a role on your premiums.
If you are a chain smoker who also enjoys hard liquor every weekend, you will most definitely not be offered the same premium as a healthy, active individual.
Misconception number 3: It is such a mission to obtain life insurance! No, not anymore! Gone are the days of having to drive to insurance companies and spending hours in a queue until a consultant could finally see you.
It is now possible to get a quote from the comfort of your own home by picking up the telephone or using your computer.
Most companies allow you to do all your paperwork online, and in the event that they require further information, they will call you, not the other way around! Misconception number 4: My wife does not work, so she does not earn an income and therefore she does not need to take out a life cover policy to take care of me once she's no longer there.
Even though it might be true that the wife is not contributing financially to the household, she is contributing through means of cleaning the home, cooking, taking the children to school and to other activities.
Once she's not there anymore, this will become the dad's responsibility and he might not be geared for all of the above demands and would need some additional help.
That's where mom's policy will take care of dad.
Misconception number 5: The cheapest life insurance policies can always be found through the internet.
Not necessarily.
Even though companies can cut out a lot of agent or broker commissions when making their policies available online, it is still necessary to compare a number of quotes before you make your investment.
I hope the above information was able to clear up some common misconceptions on what life insurance is all about!
