Some Common Life Insurance Myths
See how many of these you currently believe:
I already have enough life insurance; My employer pays for my life insurance, so I don’t have to worry about it; My spouse and I have good income so life insurance coverage wouldn’t have an impact on my family; I can worry about life insurance when I am older because I am healthy.
A Few Common Life Insurance Myths:
Being single does not give rise to the need of insurance cover:
Even a single person needs life insurance cover to meet the cost of personal debts, medical bills and funeral bills. If you are uninsured you may leave a legacy of unpaid expenses for your family or executor to deal with.
The insurance cover of twice the amount of the annual salary is enough:
Most of the people believe that the amount of insurance required should be twice the yearly income. But the truth is that the amount should be 6 to 10 times the yearly income. Another way is to multiply your annual income with the number of years until you plan to retire.
The insurance cover one gets from the workplace is adequate:
It’s a huge misconception that the amount of insurance coverage from the workplace is sufficient. It may be in some cases but not in others. Those who are married and who have dependents may require additional coverage if the term policy does not cover as much as it needs to .
At least the cost of the premiums will be deductible:
If you think that the cost of your premium will be deductible then think again. In most cases they will not be. The money that you spend for personal life insurance is rarely if ever deductible.
The one exception to this is when the policyholder in question is self-employed and the coverage being purchased is purchased for the business. In that case the premiums are deductible on Schedule C of the Form 1040.
Compare & Buy Life Insurance
It’s better to invest money rather than buying insurance of any kind:
Discard the not so useful advice of investing money rather than taking up a life insurance policy. Thou investments are a good and an important thing but even if u have accumulated a million in assets you still need to insure yourself with a million dollar life policy.
Choosing to depend upon your investments instead of buying life insurance especially when you are young and are starting a family is not so wise. What will they do after your current assets run out after you die? Think it through carefully and buy life insurance for you (and your family’s) peace of mind.
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