Debunking Myths About Life Insurance

When the time comes to buy life insurance, you may be confused by the options offered. If you are misinformed about life insurance, you may make the wrong decision when choosing a plan. Consider the following myths about life insurance and make wise choices today.

Myth: You can’t be in bad shape.

Many people think that in order to have life insurance, you have to be in perfect health. When you apply for life insurance, if you are in good health, you pay lower rates than if you are in bad health. You can get insurance when you are in a bad state of health, but you must expect that the premiums will be much higher than the insurance policy average.

FICTION: Life insurance is expensive.

Life insurance is affordable; the average cost of a 250,000 USD policy for a healthy person is about 20 USD per month. Depending on the type of policy you choose, you may have a slightly higher rate than the plan average, but you will never have to pay a life insurance premium.

FICTION: Life insurance is only for people with children.

Families with small children receive life insurance benefits, but the above statement is a myth. Anyone can take out life insurance. With a life insurance policy, you can choose who your relatives should be, and relatives do not have to be your children. In case of death the policy can be used to pay for funeral expenses, real estate expenses and much more.

FICTION: Life insurance is paid only in case of death.

While most life insurance policies are paid out at the time of death, some allow you to borrow money under this policy after you have collected enough cash under this policy. The ability to borrow cash under your policy is ideal for people who need extra income to cover unforeseen expenses.

Myth: Life insurance rates fluctuate too much.

Life insurance tariffs are often fixed for a certain period of time. Although from time to time you will find life insurance rates increase throughout the policy, it is not outrageous.
With a life insurance policy, you can usually find out your monthly payment and how long it is valid. You can expect not to pay more than your current payments during the period in question.

If you want to take out a life insurance policy, ask for different offers so that you know what to expect. Weigh your options between the term, your whole life and the universal policy. Once you find the right plan, it often comes into effect on the same day. Life insurance can provide safety in the event of an emergency or death. Do not sacrifice the economic well-being of your family to misinformation and belief in the myths mentioned above.


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