Friday 3 June 2011
Myths And Realities Of Life Insurance
01:29 | 
Posted by
khalid mehmoodd
Taking into account all the different types of policies available and all the legal terms involved, it is not surprising that life insurance is often a bad reputation in the field of financial planning. Different companies use different terms to their contracts and different agents may give different answers to a question. So what are you doing? How to find what is right and what is wrong in terms of choosing the best policy and if you are still entitled to one in the first place? We realized that there are some questions that abound in the field of life insurance and then there are some myths that need to be cleared before it can go ahead and make the right decision.
Myth No. 1: You do not need life insurance.
Wrong. There are many people who prefer their ability to choose no life insurance. Without doubt, it is less likely to die young, or during the years of work, but then again, why insurance premiums are much cheaper if you buy them when you are young and healthy. However, the main reason to buy insurance to protect you and your family against unexpected disasters. The right kind of insurance can provide much needed financial security, without leaving you penniless. If you have cargo that depend on you and your income, or even if the debts are collected, such as mortgages, credit cards, bills, or car loans, then life insurance is a necessity.
Myth No. 2: Not sure if I need work.
False. Many parents who stay at home think life insurance is unnecessary because there is no salary instead. If you calculate the cost of child care, cleaning, cooking, and transportation, you can get a clearer picture of how a non-working spouse contributes to an average household budget. You do the numbers for you and how many of these services would cost your family if they were outsourced. You can then use this amount to calculate the current life insurance coverage needed. It is imperative that each house to have a life and prevent unnecessary suffering in the future.
Myth 3: I get life insurance at work is more than enough.
Wrong. If you are single and live a modest life in terms of cost, then the employer-paid policy period may be sufficient. But if you're married with children or other dependents, and are aware of your debts and funeral expenses, you may need more coverage than that offered by the employer. You need to crunch some numbers and see if the employer paid insurance is sufficient to take care of the family during a crisis or when you switch. Needless to say, if you leave your job or pension, insurance paid by the employer is not applicable.
Myth No. 4: You can not get insurance if you have poor health or if you smoke.
False. Just because you suffer from diabetes or heart disease, for example, does not mean you will not be able to qualify for insurance. Many companies actually specialize in these types of policies. This coverage will be more expensive, but it is always available. There might be some companies that do not require an additional fee, while others even able to apply a standard rate. The key is to shop around. Let's face it, if you live with a serious illness, life becomes much more important to your family and loved ones.
If you are a smoker, all is not lost as well. Your premium will be slightly higher than the premium paid by a non-smoker, but you are still eligible for insurance. Some companies even have special rates for smokers, so always check in advance. If you managed to live without smoking for an entire year, many life insurance companies use the normal rates, and consider you a nonsmoker. Another reason to quit smoking.
Myth No. 5: It is very difficult to obtain insurance.
False. This may have been the case for years, but thanks to the Internet, the process has been simplified and easily accessible. Now you are one click away from online dating dozens of privileged and insurance companies are highly valued. You can then do all your research and buy your policy by downloading the application forms and scheduling of medical examinations required for any policy.
These are the five most common myths about life insurance today. These facts show that not only should be left out of planning your life insurance. There can be no excuses against the preparation of their future and protect you and your family.
Myth No. 1: You do not need life insurance.
Wrong. There are many people who prefer their ability to choose no life insurance. Without doubt, it is less likely to die young, or during the years of work, but then again, why insurance premiums are much cheaper if you buy them when you are young and healthy. However, the main reason to buy insurance to protect you and your family against unexpected disasters. The right kind of insurance can provide much needed financial security, without leaving you penniless. If you have cargo that depend on you and your income, or even if the debts are collected, such as mortgages, credit cards, bills, or car loans, then life insurance is a necessity.
Myth No. 2: Not sure if I need work.
False. Many parents who stay at home think life insurance is unnecessary because there is no salary instead. If you calculate the cost of child care, cleaning, cooking, and transportation, you can get a clearer picture of how a non-working spouse contributes to an average household budget. You do the numbers for you and how many of these services would cost your family if they were outsourced. You can then use this amount to calculate the current life insurance coverage needed. It is imperative that each house to have a life and prevent unnecessary suffering in the future.
Myth 3: I get life insurance at work is more than enough.
Wrong. If you are single and live a modest life in terms of cost, then the employer-paid policy period may be sufficient. But if you're married with children or other dependents, and are aware of your debts and funeral expenses, you may need more coverage than that offered by the employer. You need to crunch some numbers and see if the employer paid insurance is sufficient to take care of the family during a crisis or when you switch. Needless to say, if you leave your job or pension, insurance paid by the employer is not applicable.
Myth No. 4: You can not get insurance if you have poor health or if you smoke.
False. Just because you suffer from diabetes or heart disease, for example, does not mean you will not be able to qualify for insurance. Many companies actually specialize in these types of policies. This coverage will be more expensive, but it is always available. There might be some companies that do not require an additional fee, while others even able to apply a standard rate. The key is to shop around. Let's face it, if you live with a serious illness, life becomes much more important to your family and loved ones.
If you are a smoker, all is not lost as well. Your premium will be slightly higher than the premium paid by a non-smoker, but you are still eligible for insurance. Some companies even have special rates for smokers, so always check in advance. If you managed to live without smoking for an entire year, many life insurance companies use the normal rates, and consider you a nonsmoker. Another reason to quit smoking.
Myth No. 5: It is very difficult to obtain insurance.
False. This may have been the case for years, but thanks to the Internet, the process has been simplified and easily accessible. Now you are one click away from online dating dozens of privileged and insurance companies are highly valued. You can then do all your research and buy your policy by downloading the application forms and scheduling of medical examinations required for any policy.
These are the five most common myths about life insurance today. These facts show that not only should be left out of planning your life insurance. There can be no excuses against the preparation of their future and protect you and your family.
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