5 Common Life Insurance Myths

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Some prevailing myths surround Life Insurance but it is important to do your own research when your family’s financial security is at stake.

Elements to consider

Life Insurance, or life assurance, can be confusing. Term Life Insurance policies have several components to consider before you can arrive at the right type and amount of coverage. Determining how much coverage you need and why can be a thought-intensive process.

Inevitably, a lot of myths surround Life Insurance. Perhaps that’s why 19% of consumers who used to have a life insurance policy have lost or given up the cover, according to YouGov’s Life and Health Protection report. 

Quick Quote Protect has listed ‘5 common life insurance myths’ to help clear up the confusion surrounding Life Insurance.  

Myth #1: I have no children, so I don’t need Life Insurance

It is advisable to shop around for the best Life Insurance quotes, regardless of whether you have children or not. Having a secure Life Insurance policy in place will provide financial security for your loved ones. This might include a remittance for unpaid debts, like a student loan, or money for costly funeral arrangements. You may also be able to get a better individual deal if you’re young and your health is at its peak.

Myth #2: My employer takes care of my Life Insurance, so I don’t need to

Your employer might not be providing you with the best Life Insurance deal for your family and loved ones. In addition to this, you could probably save money on your insurance premiums if you switched from an employer-provided term Life Insurance policy to an individual one. If you were to lose your job, you would lose your Life Insurance coverage, so you might be better off purchasing your insurance separately. Plus, some experts recommend having Life Insurance that is at least 5-8 times your income or maybe even 10-12 times.

Myth #3: Life Insurance is way too expensive

Those without life insurance commonly overestimate the cost to be four times more expensive than it actually is. Term Life Insurance is by far the most straightforward type of policy and the sooner you purchase a policy the cheaper your premiums could be. Finding out the real costs of Life Insurance could result in a large, overall financial gain.

Myth #4: Only the breadwinner should get Life Insurance

You do not need to be the primary earner of your family to ‘qualify’ for Whole of Life Insurance or Term Life Insurance. It is worth considering how much the widowed partner would need to reduce their working hours to care for any children or dependent family members you might have.

Myth #5: My health is above average so I don’t need Life Insurance

The best time to buy Life Insurance is when you’re young and your health is at its peak. It is a prevalent aspect of Life Insurance that as you get older, your premiums get higher, especially if you develop health problems. You should also never rule out anything happening unexpectedly, like a car accident.

The truth

It’s important to dismiss myths about something as important as Life Insurance. Your loved ones deserve to be taken care of after you’re gone. You shouldn’t be discouraged by other people’s opinions, it is always worth doing your own research for something as important as your family’s financial security.

If you want to get an estimate for Life Insurance, contact us now for an obligation free Life Insurance quotation.