Since the decision on life insurance is recommended to make after a thorough study of this issue, we bring to your attention a collection of 4 most popular myths and their contradictions.
Myth 1: I'm too young to think about it
It is especially beneficial to buy a life insurance policy when you are young, because it is cheaper than for people in their maturity. Besides, young people often do not yet have additional savings or the so-called financial cushion that provides financial support to loved ones in an unforeseen situation.
Myth 2: Life insurance is expensive
Many admit that they would willingly insure their lives for sake of emotional security but believe it is too expensive. However, in general, people overestimate the costs before they learn them from the insurance company.
The amount of insurance payment can be influenced because it depends not only on the age and health of the insured but also on the insurance coverage. The larger the amount you choose, the greater financial cushion you will provide to your loved ones. It is recommended to evaluate the amount of coverage individually depending on the lifestyle, financial capabilities and needs of dependents: children, spouse or parents. It is also necessary to take into account the amount of credit obligations.
Myth 3: Not everyone needs life insurance
We can agree with that if we are talking about people who have significant funds, savings, who do not have any debt obligations and dependents. Namely, if the amount of their savings can cover any expenses arising from unforeseen accidents, medical or funeral expenses, and if there are no dependents or outstanding debt obligations after death, then life insurance may not really be needed.
Myth 4: It is better to save up money than insure life
Life insurance provides a sense of security from day one; in the event of your death your loved ones will be reimbursed. In turn, savings or investments take time to reach a size that can be counted on in the event of a disaster.
Source: https://finance.yahoo.com/news/life-insurance-myths-busted-know-125808097.html
Photos are from open sources.
