Debunking the life insurance myths
There are some myths flying around about life insurance. That’s why we’ve done a bit of research to try and help you understand what they are and why they are just myths.
- I’m single and don’t have anyone who relies on me, so I don’t need life insurance
Wrong. There are many types of insurance policies that cover different needs. A single person with no dependents may require cover in the unfortunate event of becoming disabled or suffering a critical illness such as cancer, heart attacks or even a stroke.
- It’s better to invest money than buy life insurance
Savings and investments are an important part of any financial plan. However, life insurance is just as important as it protects you when you can’t earn an income due to disability or critical illness. Life insurance also ensures that your family’s standard of living is maintained if you are no longer there to take care of them.
- Only the sole provider in the family needs life insurance
To determine who needs life insurance, it is important to determine if loved ones will be left financially worse off as a result of a death. If the answer is yes, than that person probably needs life insurance.
- The life insurance provided by my employer is enough to cover my family
Most group life cover policies provided by employers are a multiple of your income. In certain circumstances this may not be enough to replace the income for the time period your family requires if you were to pass away. Always seek advice to determine if your group policy is sufficient.
- Everyone needs life insurance.
In most cases yes, but if a person has enough assets that can be sold to cover their debt and or look after their family when they pass on, then they probably don’t need it as much as someone who has no assets.
So now that we’ve busted some myths around life insurance, call your insurer today and request an obligation-free Life Insurance Quote.
