Myths & Facts: Life Insurance Explained

Myths & Facts: Life Insurance Explaine

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 costs on average 1% of household incomes.

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.

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 any further from reality – you may end up paying more into the pot than you may receive however insurance policies are 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!