Life insurance remains one of those topics that’s largely misunderstood. With so much information out there, it’s not easy to separate the truths, half-truths, and outright myths from the pile. Let’s start by first understanding what life insurance really is.
Life insurance is defined as a contract between an insurance company and a policy holder to provide a financial benefit to the stipulated beneficiaries in the event of death. With life insurance, you can be certain that your loved ones will be taken care of in case of your demise. Policyholder
Despite the attractive financial benefit of life insurance, the premiums remain relatively low. This can be attributed to the misinformation out there about life insurance. Below we seek to state and debunk some of these myths.
Life insurance is a premonition of death
In a society where death largely remains a taboo topic, we have people who still believe that buying life insurance is akin to predicting your death. Nothing could be further from the truth. Preparing for your death does not change the trajectory of your life in any way. If anything, it improves the quality of your life.
The peace of mind that comes with knowing that your family will be taken care of in case of any eventuality is immeasurable. Do not let the fear of death keep you from securing the financial future of your loved ones.
The benefits only apply when you die
This notion has kept some people from taking up insurance, which will only benefit ‘other people.’ They prefer to spend the money they earn and expect that their children should earn their keep when they come of age.
Although this type of insurance is majorly paid to your next of kin, there are variations that allow you to save. The maturity period is lengthy, say 30 years. After that duration, you are entitled to a monthly or lump sum payout, as stipulated in the contract. If you’re looking for a long-term saving plan, life insurance should be somewhere on your list.
Some are too poor to afford
Life Insurance is largely regarded as an option for the financially stable. If you’re living from one paycheck to the other, perhaps you should just focus on your immediate needs? Apparently not.
In fact, the opposite could be true. If the paycheck is all you have, what would happen to your family in the unfortunate case of your demise? If you’re financially unstable, taking up life insurance should be part of your financial stability strategy.
You don’t need it if you have savings
While there is some reason that they’re too poor for life insurance, there are those at the opposite end of the spectrum who think they have enough savings or investments and don’t need the policy.
Financially, you should not have all your eggs in the same basket. Having life insurance helps you diversify your portfolio. Should something happen to your businesses, savings, or regular income, you have a solid plan B.
Now that you’re well informed on what life insurance entails, you can start the process of taking up a policy. Get quotes from insurance companies for comparison purposes. You don’t have to worry about exposing your personal details to random companies; you can get an anonymous life insurance quote online.
Once you narrow down to a few insurance companies, you can book an appointment with their advisors so you can discuss what they have to offer. Life insurance is a huge investment. Once you get it right, you can rest assured that the financial future of your family is secured.