Life insurance is one of those products where it seems that just about everyone has an opinion. A friend might tell you that it’s too expensive. A colleague might say that you don’t need it, and so on. Unfortunately, there’s a lot of incorrect information floating around, and this is a problem because personal insurance is the kind of product that could really help out a lot, in case accidents or other bad things happen to you, or to the people around you. So it’s time to call these myths out once and for all and spread the word because no one else should end up making a bad insurance decision based on a myth.
Young People Don’t Need Life Insurance
It’s tempting for young people to think that they don’t need insurance because they’re fairly healthy, they don’t yet have any dependents or a spouse, and they have a steady job. This myth is based partly on the idea that younger people don’t need permanent life insurance or some similar product since there isn’t anyone who relies on them anyway, as a breadwinner. There’s a problem with that line of thinking though because it’s too narrow. It may be true that a young person doesn’t have kids or other people who rely on him or her, but just think about what would happen if the person were to suffer a fatal accident.
Who will take care of any residual hospital expenses? Who will spend on the wake, burial or cremation? Whose funds will be used for all the logistics, travel and other smaller expenses related to tying up the loose ends in that person’s life? Now, if the person had a whole life insurance plan, then this wouldn’t be a problem. Those costs would be handled by the insurance proceeds, and wouldn’t need to be imposed on the parents, siblings or other loved ones who were left behind.
Life Insurance Only Helps When a Person Dies
Some people think that life insurance is a straightforward product, which can only offer benefits once the person dies. This is not true since insurance products offer a wide range of additional advantages which are useful and valuable while the person named in the policy is alive. For example, there’s the intangible but crucial peace of mind that comes from knowing that things will be less difficult for loved ones, in case you pass on. This forms part of how to care for your parents, spouse or significant other, and with a life insurance policy in place, you can stop worrying about them in case something happens to you. Furthermore, there are also policies, which offer riders and benefits that apply in case of disability or sickness. A policy might pay a fixed amount for each day of medical confinement, for instance, or it can offer a small lump sum payment in case the person loses a finger or toe.
These are just some of the many myths out there. What is important is to mention all these, discuss why they are untrue, and convince other people to give these myths up.
Do you have any experience you want to share or questions about Life Insurance? Ask a question in the comment section and we will try to help you!
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