5 myths about life insurance

Debunking 5 Myths About Life Insurance

Any decision to get life insurance tends to undergo hesitation, then denial. Because life insurance is not a tangible product, many people overlook its importance. You need to think about what’s important.

What happens if you die all of a sudden? What do you leave to your loved ones?  Many life insurance myths stop people in their tracks. Today, we’ll debunk them with you and help you see why you need life insurance now.

Our 5 myths about Life Insurance:

There are many myths in regards to life insurance – so many that a super long writeup won’t suffice. Even then, some myths are more common than others. Some myths perpetuate more because they resonate to many of us.

It’s normal to be “afraid” of life insurance. You’re talking about an investment that pays out only when you pass away. Many people don’t plan for that.

Even then, life insurance is a vital piece of preparation for the ones you leave behind. It’s only a matter of looking at the truths and unanswered questions.

  • Myth #1: I’m single, so I don’t need life insurance.

Single people don’t need a family to take advantage of life insurance. Even if you don’t have a spouse or dependents that can get the cash, there are ways to take advantage of the insurance money.

For starters, you can use the money to pay off your debts when you die. Sure, your debts are not your problems anymore once you die. Regardless, leaving a clean slate on your estate is an excellent way to go out.

Another viable beneficiary for your life insurance policy is your favourite charity. Whether it’s an animal shelter you volunteer in or a soup kitchen, it’s right for you. They can enjoy a good influx of finances that can come from your passing.

  • Myth #2: Life insurance is beyond my budget.

Many people who are unfamiliar with life insurance overestimate the cost of a policy. Depending on some factors like your health and income, life insurance can cost you a measly sum. When you compare it to the payout that your loved ones can get, your coverage is well worth it.

When taking life insurance, you will likely come across an agent that will help with your budget. Even without an agent, you will find that insurance providers will find a way to fit your insurance with your budget.

  • Myth #3: My job offers life insurance, so I don’t need another.

Most jobs don’t offer “portable” life insurance you can bring anywhere. If it’s a perk of your job, chances are it stays with your employer. Not unless you are 100% sure that you will never switch companies, you won’t be sure if your life insurance lasts forever.

When you buy your life insurance separate from the company-provided one, you decide on your coverage. With an individual policy, you can get personalised coverage that fits your needs.

  • Myth #4: Life Insurance Is Worthless Once My Kids Are Adults

The value of life insurance does not end once your children turn into adults. Having life insurance gives you the advantage to secure your estate once you pass away. There are so many uses for your insurance payout that you can execute many different actions post-mortem.

Whether it’s paying for your estate’s taxes, sealing off your debt, or giving your kids inheritance, a life insurance policy will provide them with what they need.

  • Myth #5: I Have A Good Chunk of Savings

Whilst savings can last for a long time, some expenses are well beyond the scope of your finances. The average funeral cost in Australia is at least $4000 for cremation, up to around $15,000.

This staggering amount of money is substantial, and if you’re not careful, can be a burden to those you leave behind. With life insurance, all these will receive care and even more. Your beneficiaries are then free to mourn without any burden left on their shoulders.

Get A Life Insurance Now

No matter where you live, life insurance is vital. It is a crucial step when preparing for a future that you will leave behind to the people you love.

Don’t hesitate. Find the right agent and the ideal life insurance policy for you today.

It MakesCents to compare Life Insurance policies

Have you considered switching your life insurance policy? Use our Life Insurance comparison service today.

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