5 Myths About Life Insurance Most People Believe In

On November 7, 2016

Protection against life’s unexpected happenings or accidents is best served by a Life Insurance Policy. This is a policy that pacifies your life after death for your loved ones. Thinking about death is an unendurable way to spend life. Yet, life insurance is something that everyone needs to have for themselves and their family.

Life Insurance provides priceless peace of mind to the deceased family and dependents in event of death. Unfortunately, for many of us, life insurance is the least favorite financial topic to discuss and understand. It may sound like an intimidating concept. But, being an essential element of personal finance, it’s important to understand what it takes to have a life insurance policy.

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There is a lot of misconception about having a life insurance in Rochester, NY. That confusion could be part of the reason that almost 54% of Americans avoid shopping life insurance. A lot of skepticism has drawn more clouds over facts than its myths. So, InsuranceTrak has tried to step ahead and dispel the different myths about insurance which most people believe in.

Here are some of the most common myths and misconceptions about a life insurance policy.

Myth 1: It’s Expensive: The biggest misconception about life insurance policy is the cost. People think it is more expensive than the protection that they truly need.  According to a 2015 insurance barometer study, 80% of the consumer misjudge the cost of term life insurance. Life Insurance can be affordable depending upon the coverage you are looking for. You can start by purchasing a policy and may even purchase additional coverage later on in life.

Myth 2: Wide Number of Choices are there: It’s true, there are many varieties of life insurance policies. Life insurance can be a single or joint insurance policy. The term life insurance can be broadly classified into whole-life insurance, permanent insurance, endowment insurance, mortgage protection insurance, travel insurance and other termed life insurance.

Myth 3: Life Insurance is Just for the Breadwinner Only: Life insurance is important for everyone. It’s been wrongly conceptualized as a policy for the breadwinner of the family. Whereas, the cost of replacing a deceased homemaker can be higher than you think. So, insuring a homemaker or stay-at-home member of the family makes sense.

Myth 4: Life Insurance by an employer is sufficient: General Life Insurance by an employer is a great benefit to the employee, but the payout is typically very low, like twice your base salary. This may not provide your family of dependents protection against any financial crisis. Therefore, it’s compulsory to have other life insurance terms added to the policy to ensure more protection.

Myth 5: You need to undertake an extensive health checkup: Usually, insurance companies ask for medical reports in case of any history of serious illness, and wants to check your current health condition. Insurers will want to gain access to medical records, and if the applicant has a history of serious illness for a long time. However, as soon as you got your policy, there’s no requirement for a medical checkup every year.

Life Insurance can be tricky in the absence of correct information. The key to ensure complete satisfaction lies in having an insurance agent or broker like InsuranceTrak. We can provide a wealth of information about the benefits, drawbacks and best method to save insurance premium costs. We are experts at comparing policies and offering the best fit solution for your individual needs, with just one click or call. You can ask us anything and trust our services for comprehensive Life Insurance in Rochester NY.

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