Life is a beautiful journey, yet an unpredictable one. You don’t know which one might be your last day. And as disheartening as it can be for your family, it will eventually hit them with financial backlash. This makes life insurance the perfect approach.
Taking out some cash from your monthly budget for something that isn’t helping you in the present times can feel like a burden. However, Life Insurance policies are the answer to all the problems faced by your family after your demise.
Unfortunately, numerous myths about life insurance are occupying the minds of potential prospects. Here are some of the most common ones:
Life Insurance is way too expensive
One of the most common myths about life insurance is that it’s costly. Research shows, 70%-80% of the individuals overestimated the cost of a life insurance plan. However, there exist various insurance packages to fit your financial status. With a little internet research, you can find the perfect plan that suits your budget- helping your family even after your death. For instance, an annual insurance plan can cost as low as 150$, a fair price to pay for your family.
Life Insurance is only for the breadwinners
A life insurance plan for the bread earner of the house is the right decision. Nevertheless, we cannot underestimate the value of a stay-at-home parent. They fulfill household chores, putting in a ton of efforts, which can leave a massive, irreplaceable void in the family’s life after their death. The surviving partner might need to pay outside assistance to carry out their everyday tasks, which can cost a fortune that can be covered by the life insurance plan of the deceased.
Young people don’t need life insurance (only the elderly can buy it)
There is an insurance policy for every age from a toddler to an elderly. The earlier the investment, the lower the rates of the packages will be. So, the smart decision is to get a premium package for the lowest price at an early age because, after a specific time, you might be covered in debt or affected by a disease. This can make it harder for you to pay your medical bills. However, life insurance can pull that weight up from your shoulders.
Term Life Insurance is better than Whole Life Insurance
Term life insurance might seem more appealing than full life insurance at first glance. But in the long run, Whole Life Insurance is pragmatic and affordable as there are no increments in the rates with every renewal, unlike Term Insurance. Also, the facilities they provide are not affected by any medical or financial changes in your life, as long as the premiums are paid.
Only healthy, active individuals can buy Life Insurance
Every person is applicable to life insurance as long as they can afford to pay the premiums. There exist a couple of companies and policies that cover insurance even for those with unstable health conditions.
Even though there are several myths surrounding life insurance policies, it is impractical (and somewhat foolish) to believe them and put your loved one’s security at stake.