When you ask people about the different topics that they want to think about, you will probably find the topic of life insurance among the last items of their list. It is a fact. Almost nobody wants to think about or rather yet, talk about life insurance. One reason for this is that life insurance is associated with the thought of a person dying and since nobody wants to think about dying, they do not want to think about anything associated with it either. Another reason that people shun away from discussions about life insurance is because of the confusing terminology that goes along with it.
A lot of people do not like to talk about life insurance because they feel overwhelmed about all the terminologies involved in purchasing a policy. Other people feel that a policy is for somebody else to worry about and not them. Debunking the different myths that people have about life insurance can help them understand why they need a policy of their own.
Only those who have dependents need to buy a policy: It is true that the very concept of life insurance was conceived to protect the dependents from adverse financial conditions in case the major breadwinner dies premature death. However, it does not mean that people who do not have any dependents will not need any coverage. In fact, such a person should always buy a low cost term life insurance policy to cover his funeral expenses or even some unsettled bills that he may leave behind. If you contribute charities, you can also cover the recipient with such a policy. It will make sure that contribution does not end with your life.
Employer sponsored policies are enough: These days, most employers provide group insurance for their employees. More than that, they are today required to indemnify loss of a personnel’s life, especially in case the death is work related. However, most of the time, the coverage is too small for the need of the family. Ideally, the proceeds from a life insurance benefit should replace the income earned by the deceased; but an employer sponsored policy can hardly do that. Therefore, even if you are covered by employer sponsored policy, buy additional coverage to make life comfortable for your family.
Young and healthy people do not need life insurance coverage – This is a major misconception. It is true that young and healthy people generally do not die, but there is no guarantee that they will not. It is also a fact that younger people are least ready for self insurance. If such a person die uninsured, his family faces worst kind of financial turmoil. What is more, if you compare quotes life insurance, you will find that rates increases with age. That is why if you want your family to be secured and the coverage at an affordable rate, you need to buy it early in life.
One life insurance policy is same as the other – Today we have different types of policies; they have been conceived to meet different needs. They not only offer different benefits, but also come with different price tag. That is why you are required first to learn about different policies and then to know your need. It is only then that you will be able to choose a policy that is compatible to your needs. Otherwise, you will only be wasting your money. Receiving life insurance quote on line for in depth comparison may help you in this.
Purchasing a policy is too much a headache – Indeed, under normal circumstances policy purchase is a time consuming matter. You first need to receive and compare quotes and then to apply. Next you need to appear for a paramedical test as well as for an interview. The underwriting process too is time consuming; it may take up anything between four to six weeks. However, if you are ready to pay a little more, you can have all these steps bypassed. No medical exam life insurance policies just require you fill up an online form and submit it. If you qualify, you will start getting the coverage from the next day only. There is no medical check up or face-to-face interview. The purchase process is simple, easy and instant.
Not knowing the truth about life insurance policies may cause a person to avoid purchasing one. It is better to debunk all the myths about insurance to have a better understanding of it.
Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on life insurance rates and low cost life insurance, visit his site today.
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