Like with everything else in life, there are many myths about life insurance. This article will take a look at the myths surrounding life insurance and set the record straight, helping you to make the right choice for you and your family.
The most common and most popular myth is I don’t need life insurance. This is absolutely false. The only situation will you not need life insurance is if you do not have children, have money on hand to cover all debts and funeral expenses, and do not feel the need to offset the loss of your income to a spouse, leave any additional money to family, or to a charity. In today’s world it is unlikely that you will have the funds readily available to fulfill all your wishes or meet your obligations after your death. Most likely you will be having someone who relies on your income for their day-to-day needs – could be your spouse or children. You will most likely need life insurance if you have debts like a mortgage, credit cards, or car loans. Another common myth is that if you are a stay at home parent, you don’t need life insurance. The logic behind this myth appears to be that since there is no income to replace, you don’t need life insurance. Well, for starts life insurance is not just about replacing lost income. Life insurance has an investment value. You can use the money from life insurance for various needs like child care and housekeeping.
Your employer provides you with life insurance as part of your package. So you don’t need an individual life insurance policy. This is another myth. First of all the life insurance coverage provided by your employer might not protect yourself and your loved ones as much as you think. In most cases, the coverage will cease the moment you leave the job. This includes retirement. Being without a job is tough enough. Now think of the risk if you don’t have a job and life insurance. What if you have a mortgage life insurance which you had to purchase when you brought your home? If you think mortgage life insurance will provide you with sufficient coverage, you are sadly mistaken. Take a close look at the name – mortgage life insurance. Mortgage life insurance pays off your mortgage if you die before it’s paid. There’s nothing more to it. If you clear the mortgage in your lifetime, the coverage ceases.
