Life Insurance – The Myths and Facts

Life insurance offers a piece of mind for many and for those who are thinking of getting a policy there are often a number of questions that arise.

With many different types of policies, packages and providers there are a number of myths about the benefits of registering a life insurance policy. The Fintuity team have listed the top myths surrounding life insurance policies for those seeking that additional peace of mind:

Myth 1– Life Insurance is Expensive

Fact1 – False, life insurance packages come for all budgets and the amount of cover can be tailored to what you can afford.

Myth 2 – I am not the sole household earner, thus I won’t benefit from a policy

Fact 2 – It can be hard to see a benefit if you are not the sole income-earner but without knowing what life may throw at you having additional health and insurance coverage for the main earner could be incredibly useful should the worse happen.

Myth 3 – I have employee life insurance so don’t need a new policy

Fact 3  – Whilst some employee packages will offer a life insurance, they are often limited in scope – its best to shop around and check for additional packages that might help cover all eventualities. Employee packages  may however cease when you leave the business and obtaining replacement cover may become more expensive as you get older.

Myth 4  – All life insurance policies are the same

Fact 4 – The insurance market is competitive and we are all entirely unique – each policy is naturally tailored to your circumstances, income, health and a wide array of other factors.

Myth 5 – I am fit and health, I don’t need a policy

Fact 5 –  You are never too old for a life insurance policy and whilst you may be fit and healthy now, you never know what is around the corner.

Myth 6 – The insurance company won’t pay out

Fact 6 – Insurance pay-out’s on average are 90% and above across the industry, so there is every chance of a speedy pay-out.

Myth 7 – You’ll need a medical or to share your records

Fact 7 – You may need this depending upon the policy of choice – in general many policies will not require a full medical.

Myth 8 – Life insurance policies act a little like a savings account

Fact 8 – At first glance it does look similar but it could not be further from reality – you may not receive anything back however the insurance will be there to help in a real emergency.

Myth 9 – Life insurance is a hassle to obtain

Fact 9 – The process of onboarding is a one off and is pretty straightforward and once completed it’s all done. In an increasingly unstable world a little insurance can go a long way to giving both security and piece of mind!

Introducing Fintuity – The UK’s  Digital IFA!

Fintuity is like a traditional IFA, only we are an online adviser which means we can offer a more cost effective, time-sensitive and flexible service! We offer the full range of IFA services via our digital platform, at below industry rates and at your convenience. Please do not hesitate to get in touch to see how we can assist you.

For all enquiries please visit www.fintuity.com or contact Fintuity’s Communications Manager, Nic Cobb at nic.cobb@fintuity.com.

Please Note: All information, references and dates included in this article were accurate at the time of publishing.