Life insurance gives you peace of mind and reassurance that if the worst should happen your loved ones and potentially the home you worked so hard for are financially secure.
Supporting your family is your top priority, life insurance prevents your family from potentially enduring extreme hardship when you are not there to provide for them.
There are many misconceptions about life insurance. The key to getting to grips with life insurance is understanding that everybody is different. Your individual requirements and circumstances will shape your policy and premium.
Life insurance is costly
Life insurance is not expensive, the cost of your policy will depend on your age, the term of the policy and your health.
You don’t need it!
Many young, single people are of the opinion that they do not need life insurance. You have no dependents so what’s the point? If the worst did happen, wouldn’t it be nice to leave something to your niece, sister or parents?
You already have it
Perhaps you get life insurance at work as a perk. However, it is important to check that the payout is sufficient to take care of your beneficiaries adequately. Perhaps you have a mortgage, and you want to be able to pay it off and have funds left over to ease financial pressure on your family if you are not there.
You will need annual check-ups
It’s not true that you need annual health check-ups. In most cases, you will not need a full medical examination before taking out a life insurance policy. You will be asked to provide information about alcohol consumption, whether you smoke or not, your height, weight or anything else in your lifestyle choices that could affect your health, for example; Do you have any dangerous hobbies?
You need Life insurance to get a mortgage
While it’s true that some mortgage providers require you to take out life insurance, generally it’s not required. If you are obliged to take out a life insurance policy as part of your mortgage deal - Is it really such a bad idea? Your family will reap the benefits, while your mortgage provider has peace of mind that your mortgage will be paid.
You will get taxed on payouts
Life insurance payouts are tax-free, so your family will not endure income and capital gains tax if your insurance provider makes a payout. However, payouts can be added to the total value of your estate and could be subject to inheritance tax.
Life insurance won't cover Covid
It’s essential that you check the terms and conditions of your policy. Some insurance providers may differ. Generally, it’s worth remembering, that if you or a loved one makes a claim on your life insurance policy, you are subject to the terms and conditions of your policy and should receive a payout in the event of covid.
You can't get a policy with pre-existing conditions
It’s not true that you can’t take out a life insurance policy if you have pre-existing medical conditions. It will increase the cost as it increases the chances of you making a claim. Unfortunately, certain insurance providers may refuse to offer cover, although it’s worth remembering that there are specialist life insurance providers who will cover you.
In conclusion
Life insurance is important when it comes to providing for the people closest to you. Just remember the golden rules. Check your terms and conditions thoroughly and always be honest and disclose any information that could affect your premium. Otherwise, you could invalidate your policy and your loved ones will suffer the consequences.
Do you want to enjoy that comforting feeling of knowing you can always take care of your loved ones?