Top Four Facts and Myths about Life Insurance

People tend to take important decisions in life because of irrelevant advice by a friend or relative. When it comes to false information floating around, insurance matters follow the same share. It is not bad to listen to people’s advice but what is necessary is to research every bit of it and know if it is right or wrong. In this blog post, we shall share some of the significant myths and facts related to life insurance that should be taken care of before adopting any idea.

1. A stay-at-home Family Member does not Require Life Insurance

Life insurance is equally important for a stay-at-home as well as an employed spouse. In case your stay-at-home spouse passes away, the working partner will have to invest more efforts and time, which could affect their job or business. Moreover, the cost incurred by hiring a nanny or domestic worker to help with household tasks will add to the expenses. Therefore along with the emotional turmoil, one has to undergo financial implications as well which could be protected from the deceased spouse’s life insurance.

2. My Company has included me in their Group Life Insurance; therefore, I don’t need another life insurance Plan

An individual is covered under the company’s group insurance plan till the time he/she is employed  with the said organization. This coverage automatically ceases once the employment ends with the organization. This calls for a need of a separate insurance plan.

3. A Life Insurance Coverage that is double my Salary will work

As per the financial requirements and the rising cost of living in today's world, insurance that is just double  your salary will not suffice your needs. Therefore, to save a certain amount in the initial stages, people often commit this mistake and opt for the coverage twice or even thrice the times of their salaries. While the amount of life insurance cover would depend on each person's specific situation, coverage of this range would not suffice.

4. With my Medical Condition, I Cannotavail Life Insurance

The insurance company will not deny insurance to those who are suffering from any medical ailment but the premium amount can depend upon how severe the condition gets. Also, making a full disclosure to the life insurance company is important with regards to the policy holder’s medical history while applying for a plan.

The Bottom Line!

Not buying a  life insurance policy is a big risk not only for you but also for your loved ones because they are the ones who will bear the burnt later. Don't let yourself get carried away by the false pieces of information, instead spend time researching about the true facts. The above-listed points are some examples which show the true importance of a life insurance policy but there are many other factors that make it a must-have situation to secure the future of your loved ones. So explore every bit before choosing a permanent plan for yourself and your family.