“And in the absence of facts, myth rushes in…” – Stacy Schiff.
Misconceptions are a part and parcel of life itself. Very few people bother to crosscheck the information they have at hand with reputable sources and hence end up making bad choices and taking wrong decisions. Unfortunately, many times these decisions can lead to huge blunders and even end up endangering your life in ways that are not promptly apparent. One of the biggest topics around which a lot of mythmaking ensues is life insurance.
A life insurance is an investment that is not just for your benefit but also for the benefit of your family and loved ones. It is a slightly morbid topic to ponder upon so you create a bubble of myths to keep you safe, so to speak. However, it is a false sense of security so it is best you clear your head and get your facts in order. Here are the most common misconceptions regarding life insurances:
5 Misconceptions That Prevent You from Buying a Life Insurance
1.If You do not Have a Family to Look after What Is the Use
The number one misconception that exists regarding life insurance is that if you are single and don’t have a family to support then why to get it. Well, the truth of the matter is that you may in the future be planning to get married or start a family of your own or you have ailing parents who aren’t getting any younger. In that case, if something were to happen to you prematurely, a life insurance can help tide over the crisis in their times of need. If you accumulate debts during your lifespan and are unable to dispense of them in time, your family will not have to carry that weight.
2.Be Young and Enjoy the Freedom
Actually the younger you are the better the time to get an insurance policy. Firstly, the premiums are lower because you have fewer assets to insure. Secondly, your health may deteriorate as you grow older and it poses a huge risk in your way of getting a life insurance. So do enjoy your life but also get it insured as soon as possible.
3.My Workplace Insurance is Enough
Most workplaces offer life insurances which are valued at more or less equal to your salary times one which may not be enough especially if you have a spouse and children. Look into additional coverage provisions if your workplace provides it and determine for yourself exactly how much cover you need. Or get another insurance more tailored to your requirements.
4.Cash- Value Policies are Easier on The Pocket
Not quite, it is a dicey condition. Basically what some of these policies outline to get you excited is that you won’t have to continue paying your premium from your own pocket after a few years. But this is conditional because it’s based on the company’s interest assumptions or dividend scales. If after a few years the interest rates fall or the dividends decrease then you will be back to paying your own premiums which can be a rude awakening. So if you do get a cash-value policy to ask about how future changes will interfere with your premium rates.
5.Savings Over Insurance
Here’s a suggestion, why not both? It is obviously important to keep up a savings account as a plan for the future but something that is equally as important is getting life insurance. The premium can be adjusted to as much as you can pay and still have money left over to put into savings and run the household. This will obviously require a bit of intense planning and calculation but it is not impossible and this bit of smart planning will go a long way.
Life insurance can be easy to procrastinate with so just get it over with as soon as possible, get all your ducks in a row and secure your future for a relaxed life and afterlife.