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

Look for car insurance in South Carolina
Published by Ronnie Brain on January 17th 2012 | Insurance
It is a legal requirement that you carry your auto insurance South Carolina all the time. Failure to...
 
Classic car insurance requirements
Published by Johnjakson on January 30th 2012 | Insurance
If you have a classic car, most likely it is one of the most valuable possessions. Defending and mai...
 
Make your life simple with solar panels
Published by Strobwake on April 13th 2012 | Insurance
When you think about installing solar panels in your house the first image that comes to your mind i...
 
Cherishment for businesses, searching for commercial insurance
Published by Andrew Edwards on May 7th 2012 | Insurance
While hoping for successful running business, you have to plan everything according to market needs...
 
Taxi Insurance Broker Quote will give you help to get a company insurance
Published by Atif Saleem on December 10th 2011 | Insurance
There are many companies that are serving to the costumers but there is also a way to wasting your t...
 
Effective Van insurance purchasing ideas and related information
Published by Gregorypeck on February 28th 2012 | Insurance
Making monthly installment on your van insurance policy isn’t more terrible than facing a heavy lo...
 
Know More about the types of life Insurance Plans
Published by Max York on December 8th 2011 | Insurance
Life coverage has become an integral part of every person’s life. By opting for a life insurance p...
 
Why should we compare car insurance?
Published by Jenymorison on December 9th 2011 | Insurance
Are you a homemaker? If your answer is yes then surely your family is dependent upon your spouse’s...
 
Shopping for insurance coverage - ideas and guidance.
Published by Ramky on December 13th 2011 | Insurance
A great many people tend to be puzzled with the phrases used in a number of insurance policies - car...
 
You can get car insurance in Missouri easily
Published by Insurance Inde on January 14th 2012 | Insurance
Missouri drivers are some of the most disciplined in the United States. They highly regard personal...
 
What do self-employed people need to know about health insurance?
Published by Andrew Low on February 10th 2012 | Insurance
If you live in the UK and take out health insurance, it is unlikely that you will be able to offset ...
 
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...
 
How to get the cheapest car insurance
Published by Harrisonford on February 28th 2012 | Insurance
You think that cheap car insurance does not exist? Well you are wrong about it. You can actually get...
 
Look at us and buy affordable business insurance
Published by Andrew Edwards on March 14th 2012 | Insurance
While making choices in for business insurance you should not avoid us...
 
Georgia Health Insurance Plan offers best cover for your life.
Published by Ricky Martin on May 15th 2012 | Insurance
At the time of crises, money that really helps and we always look for supportive hand. Georgia Healt...
 
Have a safe and secured financial life
Published by Pramod Kumar Singh on May 23rd 2012 | Finance
Know about the different financial investment options and invest in various financial products to ha...
 
Help yourself by knowing more about auto insurance!
Published by Jerry on March 14th 2012 | Insurance
There are many people who find auto insurance quite confusing and tricky. It is because of this reas...
 
Car insurance and its benefits.
Published by Robert King on January 26th 2012 | Finance
Car insurance is an understanding between the insurer and the insured where the insurer promises to ...
 
Business insurance plans for online business
Published by Andrew Edwards on May 10th 2012 | Insurance
While starting new online business consider business insurance as the prime requirement of your comp...
 
Cheap car insurance for new drivers
Published by Ahmadgill on December 22nd 2011 | Insurance
Our company is the best company to give you cheap car insurance for young male drivers that’s rate...