Finance Globe

U.S. financial and economic topics from several finance writers.
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5 Life Insurance Myths to Ignore

5 Life Insurance Myths to Ignore

Before we go any further, let’s get one thing out of the way: there is nothing fun about buying a life insurance policy. Even so, once you put this in the past, you will feel a great sense of relief.

To avoid mistakes, to ensure that everything goes as planned, you need to separate fact from fiction before you begin the shopping process.

Unfortunately, there are many myths that can stop you from buying the right policy at the right price. Below are five that you need to ignore:

1. Your health doesn’t matter. Nothing could be further from the truth, as this is given great consideration by every life insurance company. The better your health the cheaper your premium will be.

2. Life insurance brokers have your best interest in mind. You want this to be true, but it is not always the case. Not all brokers are honest. Instead, they push you towards the policy that will make them the most money.

3. Life insurance is one of the best investments you can make. This depends on what you mean by “investment.” If you are looking to invest in your family’s future, this is the way to go. If you are looking for a way to earn money for your personal gain, there are better options. Life insurance is not an investment vehicle.

4. Age doesn’t matter. Just the same as your health, your age comes into play when buying life insurance. The earlier you buy the less you will pay. Keep this in mind if you continue to put off the process, year after year.

5. All life insurance policies are the same. This has never been true and never will be true. For example, whole life insurance and term life insurance are different in many ways. Additionally, you have the right to opt for varying levels of coverage.

If you ignore these five myths, you will find it much easier to find and buy the right life insurance policy at the right price.

Do you have any other tips for making a purchase?

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Comments 1

Frank on Monday, 21 December 2015 09:30

Great information here Chris. One thing to consider, which I think most people know, is you only really need life insurance if you have a beneficiary (family, loved ones, etc.). A young individual with no family likely will not need life insurance. Most people know that, but some people purchase life insurance without realizing that.

Great information here Chris. One thing to consider, which I think most people know, is you only really need life insurance if you have a beneficiary (family, loved ones, etc.). A young individual with no family likely will not need life insurance. Most people know that, but some people purchase life insurance without realizing that.
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Monday, 19 August 2019

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