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!