Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Five Myths about Life Insurance

By Denise Mancini Subscribe to RSS | December 3rd 2011 | Views:
loading
 
  



Many people don’t know enough about life insurance and therefore fall easy prey to myths and fallacies about life insurance that just aren’t true. Not knowing what or who to believe, a lot of people are afraid of buying life insurance for fear of being duped by an agent into buying a policy they don’t really need. What are some of the myths about life insurance you should guard against? Below we’ve called attention to a few you should be aware of if you want to make the best life insurance decisions.

Myth 1: Everyone needs a life insurance policy!

Contrary to what agents would have you believe, not everybody needs life insurance! If you don’t have any debts to pay, no dependents who rely on your income for their livelihood, and enough in your bank account to pay for your funeral and cover your liabilities, chances are you don’t need life insurance at all. However, if you have a large estate which may be liable to estate taxes after you die, buying a life insurance policy could help offset those taxes that a legal heir of your property would have to pay.

If you’re young, just married, have a house loan, student loans, or other debts to pay off, you should definitely think of life insurance to cover those crucial years in your life that you would spend paying off your loans, putting your kids through college and building a tidy, secure retirement fund for your future. Term life insurance policies are available for 5, 10, 20 or 30 years and therefore, perfectly suit that temporary time period when you have debts to pay, savings to build and a tight budget to work with.

Myth 2: People who don’t earn, don’t need life insurance

Because the major purpose of life insurance is to replace loss of income should the breadwinner of the family die, it may appear as if those who don’t work, don’t need life insurance. But not everyone who works gets a salary. Stay-at-home moms, for example, work at home. Their multi-tasking activities include caring for children, cleaning, cooking, driving their kids all over the place and running all sorts of errands but they never receive a paycheck at the end of the month. If a stay-at-home-mom were to die unexpectedly, you may need to hire a whole battery of people ranging from housekeepers, day care centers, cooks and nannies—all of which cost money. Salary.com valued the services of a stay-at-home-mom at around $135,00 a year. While her worth is priceless, her monetary value should be covered under a life insurance policy.

Myth 3: Term life insurance is better than whole life insurance

There is a variety of life insurance products to suit a variety of life insurance needs. Therefore, no particular type of life insurance policy is better than the other. The type you choose is entirely dependent on your personal needs.

If you’re looking for temporary, but cheap life insurance, then term life insurance is what you need.

If you’re looking for a policy that would offer you lifelong coverage then a permanent life insurance policy would best fit this need. Because of the investment component attached to it, it is typically 5 to 10 times the cost of term life insurance. While it’s not the best way to invest your money since it does not yield the kind of returns you would expect, it does have benefits. You can borrow from the cash value of the policy without having to prove collateral, premiums never go up, and your children can use the death benefits to offset your estate taxes.

Myth 4: Life Insurance through the workplace is all you need

Life insurance provided by your workplace usually is 3 to 5 times your annual income. This may not be enough to meet your needs. Think about it – if you were to die today, would the coverage adequately meet your family’s financial needs?

Other disadvantages of workplace life insurance are that it is not portable. If you quit or lose your job, you lose your life insurance.

For the above reasons, it’s always better to buy an independent term life insurance policy. It’s cheap and ensures your family’s needs are met.

Myth 5: Life insurance companies will deny coverage to people with health problems

A recent survey showed that more than 90 percent of applicants received coverage. The truth is today, most people will find a policy to cover their life in spite of having blood pressure, diabetes, suffered through cancer, or been treated for a chronic disease. In fact, some life insurance companies specialize in certain health conditions and are more than willing to accommodate those who cannot find a regular life insurance policy.

Get as many life insurances quotes as you can

If you know the coverage you need and the type of life insurance you want, just go online and ask for free life insurance quotes on reliable aggregator websites. Life insurance companies use different underwriting systems, and therefore, the more you shop the more likely you are to find companies that specialize in offering favorable rates to those with your specific needs. Online is easy, quick and convenient and increases your chances of finding the best life insurance policy at the most affordable rates.

Denise Mancini - About Author:
About AccuQuote:



AccuQuote is a leader in providing term life quotes to people across the United States. In 1986 it began operating with a single goal: to make the process of buying term life insurance as easy as possible for its customers. Their experienced professionals consistently deliver the most affordable term life insurance rates by comparing thousands of life insurance policies from dozens of top-rated carriers.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/insurance-articles/five-myths-about-life-insurance.htm

Related Insurance Articles Subscribe to RSS

Tips to find the best car insurance comparison sites
Published by Geenadavis on February 25th 2012 | Insurance
Shopping around for the cheap auto insurance online can be a challenging task if you do not know how...
 
Basic needs of employer’s liability insurance
Published by Andrew Edwards on February 10th 2012 | Insurance
A plan your company requires legally refer to as employer’s liability insurance...
 
Cheaper van insurance – ways to find the best deal
Published by Robmarshall on March 28th 2012 | Insurance
Whether you have a larger vehicle or a smaller vehicle, you will definitely have to buy an insurance...
 
Find the low cost auto insurance online and compare the market
Published by Jameshaven on March 2nd 2012 | Insurance
In view of the current economic conditions of the world it is no wonder that everyone is looking to ...
 
Best Affordable medical insurance
Published by Lessardcasey on February 11th 2012 | Insurance
Shopping for affordable medical insurance is usually not something the average person has to do, giv...
 
To get insurance for your Vauxhall vehicle
Published by Ahmadgill on January 26th 2012 | Insurance
We can give you help to get Vauxhall Corsa Insurance and spread rates on getting insurance that is b...
 
Importance of one’s own vehicles insurance
Published by Shyam Singh on March 2nd 2012 | Insurance
Suit one’s own insurance policy with each of your must have: Ones own vehicles insurance must have...
 
Considerable requisites about product liability insurance
Published by Andrew Edwards on May 19th 2012 | Insurance
Everyone out there in manufacturing business, wants coverage to get over the conditions regarded...
 
Importance of getting life and medical insurance while residing in Dubai
Published by Andy Robert on January 22nd 2012 | Insurance
There are many insurance policy companies operating in UAE. The life style of residents of Dubai dem...
 
Tips that can help in getting cheap van insurance
Published by Gregorypeck on February 28th 2012 | Insurance
Previously the use of van was very limited but now people of different professions use it. Buying a ...
 
Online health insurance quotes
Published by Lessardcasey on February 11th 2012 | Insurance
Comparing health insurance quotes to find the best deal for you can be done through HealthInsuranceQ...
 
Get your health cover from Georgia health insurance plan
Published by Ricky Martin on June 20th 2012 | Insurance
People can cover their health related issues from Georgia health insurance plan, and can enjoy your ...
 
Efficient ways to get cheap car insurance
Published by Robmichae on March 2nd 2012 | Insurance
It was never this easy to get the car insurance quotes. With your fast internet browsing speed you c...
 
Fast tips and advices related to auto insurance
Published by Jerry on March 13th 2012 | Insurance
Insurance refers to a specific type of management that compensates the loss of a valuable asset. Th...
 
A Different type of life insurance
Published by Jack Travis on December 9th 2011 | Insurance
Disadvantage of this type of life insurance is that it will be automatically terminated once the per...
 
Get relief from day to day mishaps and provide insurance coverage for your van today
Published by Gregorypeck on February 25th 2012 | Insurance
For most manufacturing or service providing companies, it is the first priority to have a good runni...
 
Why You Need a Private Medical Health insurance
Published by Adamson Baker on July 7th 2012 | Insurance
When NHS is not adequate for a certain treatment, most patients seek the assistance of private consu...
 
Alfa Romeo 159 car insurance is the best way for the safety
Published by Kaisar on January 2nd 2012 | Insurance
So you should hurry find the best Alfa Romeo Brera car insurance company and purchase the insurance ...
 
Steps to find car insurance comparison sites
Published by Geenadavis on March 1st 2012 | Insurance
In today’s economic downturns, owning an automobile is more of necessity then a luxury, and if an ...
 
Importance of comparing commercial insurance quotes
Published by Andrew Edwards on April 20th 2012 | Insurance
If you are running a business which is not performing in terms of huge profits...