When you believe in a false notion about something, you do not want to accept the truth about it. Similarly, people believe the various untruths about life insurance that are floating around. In this article, we will expose these untruths so that people can overcome their fear and buy a policy.
Myth 1. People do not have the time to buy insurance because it is a long drawn out process. One of the main reasons why people are not prepared to spend time on purchasing an insurance policy is because it is too complicated a process. When companies first started selling insurance, this was actually the case. The applicant first had to meet with an insurance agent and listen to endless sales talk about various policies. If after this he identified a policy, he had to then spend time filling out various application documents. Insurance rates can only be determined after a medical report is submitted. Often this took time not only at the clinic but also for the report to be submitted. The underwriter would then go over the report and declare the applicant fit or unfit for coverage and the cost of the life insurance quote was based on his submission.
Nowadays, because of the utilization of the internet, a person can apply and purchase a term life insurance no medical policy in just a few minutes. There are many life insurance websites that a person can log in to and select from within that website the amount of coverage he/she wants and the length of term. The website will ask for personal details and medical information which will be the basis for computing for the amount of premiums that the person will pay regularly.
Myth 2. Seniors are the only category that needs life insurance. There is a policy called term life insurance for seniors that can be taken by those over the age of 50. The money from the policy can be used by their families to pay for funeral costs or other final expenses. While it is true that the older you are the greater is the need for life insurance, many insurance companies target the young with attractive schemes. Younger people must avail this and get a policy since their life can be cut short by an accident, natural calamity or an unforeseen terminal illness and if there is no policy their family can be left with no kind of income.
Myth 3. Life insurance rates are too high and way over my budget. This is the lament of most middle income families. They realize the need for life insurance but without proper guidance can end with a policy that costs too much. Since the cost of insurance depends on the coverage amount and term period you choose, you have the ability to regulate these two figures and get a low cost life insurance. For example, if you calculate your family’s current expenses and decide that the coverage amount should be at least $500,000 to protect them, you must now select the term period for this coverage. If you select a short term – say 10 years – then the premiums rates will be higher than if you select a longer term – say 25 years. Hence, a smart selection will help you get a low cost plan. Opt for level term insurance and insurance rates will not go up for the entire period of the policy.
84Myth 4. I prefer term insurance to permanent insurance. If you have short term needs and a limited budget then you must opt for term over permanent insurance. However, permanent insurance, although it is more expensive has its own advantages. It offers the insured an investment option wherein a portion of the premium payments is invested in some savings schemes selected by the insurance provider. The holder can in the future withdraw any amount from this saved money and use it for whatever expenses he wants.
64Myth 5. You are stuck with the policy you choose. All insurance companies offer the customer a base policy along with some additional add-ons. These are referred to as riders and different companies have different options. Using these, the customer can alter his policy to better suit his requirements. Make sure you are given the option of selecting your own riders and are not forced to buy those that the insurance company prefers.
Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on insurance term life and cheap term life insurance quotes", visit his site today.
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