Awareness Articles (3)- Top 6 Misconceptions about Insurance

Publication : Nanyang Siang Pau
Date : 12 July 2010
Section : Business
Page : 7
Headline : Top 6 Misconceptions about Insurance
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Note: the following article points out the top 6 misconceptions people generally have about
insurance. The misconceptions are: 1. it is easy to get insured but not when it comes to claims 2.
I am still young, why would I need an insurance? 3. I am very healthy, I don’t need an insurance
4.I am very rich, I don’t need an insurance 5. What’s the use of insurance when I die? 6. I cannot
afford to have insurance

Term life insurance has several advantages. But understanding term life insurance and its advantages implies sifting by way of the myths surrounding it; and there are numerous myths about life insurance. These life insurance myths and misconceptions can result in too small cover causing economic hardship for families suffering the loss of a loved one.

To avoid this from happening to you, we’ve taken a look at the most prevalent misconceptions about life insurance to set the record straight–helping you to make the proper life insurance choice for you along with your family.

#1: I do not perform outside the residence so I don’t will need life insurance.
False! Just mainly because there’s no paycheck to replace, doesn’t mean life insurance is unnecessary. A life insurance policy that delivers protection for a stay-at-home parent isn’t so considerably in regards to the money they bring in to the family, but instead concerning the income they preserve within the household.
In reality, have you ever considered what amount it would cost to pay for childcare and housekeeping in the absence of a stay-at-home parent? Don’t underestimate what amount this would need, child care is costly and is really a growing cost.

#2: I’m young so odds are I will not will need life insurance.
Some men and women are gamblers by nature and decide on to take their chances by skipping out on life insurance completely. Even though it’s unlikely you are going to die during your working several years, you are not insuring for what’s likely to occur but instead, for that worst-case scenario.

That is why term life insurance is inexpensive for young, nutritious people. Purchasing life insurance now signifies you’ll be providing economic security without spending a great deal of cash for it.

For example, on the internet estimates show that a $250,000 10-year term policy for:
* a balanced 35-year outdated woman fees as small as $165 a yr * a balanced 35-year old man prices as tiny as $195 a twelve months

What’s far more you might even be eligible for favored daily life rates that imply the annual premiums are even less! Preferred prices are lower premiums – for the same protection – provided by an insurer based on your health. The great news is that eligibility for preferred prices is frequent and could save you up to 30 per cent off the standard rate.

#3: If it is actually so inexpensive there ought to be a catch.
There’s no catch to term life insurance. Your basic term life insurance coverage will offer you cover so prolonged as you pay your premium. You invest in term insurance policy cover for your duration of time you may require life insurance, whether or not that’s until eventually the kids are out of school or right up until your mortgage is paid off.

Plus, your premiums are fixed for your length of the term. They will not enhance even if the status of your wellness changes.

#4: I don’t require life insurance once my kids are self-supporting and my home loan is paid off.
Everybody’s insurance demands vary. But how would your spouse manage every day residing expenses devoid of your support? And what if your spouse outlived you by ten, even 20 decades?

Even when your young children are no longer living at home and you no longer have large debts, like a mortgage loan, there still are concerns you really should look at before deciding that life insurance is unneeded.

#5: I have life insurance via my job. I do not need to have any more insurance policies coverage.
False. The truth is your life insurance cover by way of your function may not be protecting yourself along with your loved ones as significantly as you think. Review just how much your employer-paid insurance plan provides and calculate no matter if this is sufficient to retain your family members comfy by means of the challenging times if you’re not around.

What’s a lot more, whenever you leave your job for any reason, which includes retirement, your coverage normally stops.

#6: It’s such a hassle to obtain life insurance.
Thanks towards the Net, obtaining quotes is fast and easy. There are many on the internet life insurance quote services and usually, all you need to do is answer a couple of straightforward questions to obtain quotes. Occasionally, you may even buy a coverage online.

Conclusion:
From the time you marry, buy your very first house, start a loved ones and enjoy retirement, having life insurance suggests you as well as your family members have the security knowing you’ll be able to reach the long-term fiscal goals you have set out.

Life insurance policies offer you with customized protection for your family’s needs. Comparing estimates on the World wide web can enable you uncover inexpensive life insurance which will protect you along with your family in the many years to come.