8 Myths About Buying Life Insurance Debunked
3rd January 2017
We know that life insurance can be a difficult topic to get your head around. It can be difficult thinking about the unexpected and there are plenty of myths surrounding life insurance that many of us believe to be true.
Finding the right policy for you can be hard enough so we're here to investigate, and help you make an informed choice when you look at your options for life cover.
1. "I'm in perfect health, why would I waste my money?"
Unfortunately, you never know what's going to happen, and your passing could suddenly leave your family financially burdened. With life insurance as a safe guard, this could be avoided.
2. "I would never qualify for life insurance"
Age, medical history or an underlying medical condition may be among the reasons that you think life insurance isn't for you. But if anything, it's even more important to get covered. Shop around and make sure to weigh up your options before finding the best coverage to suit you and remember that all providers have differing acceptance criteria... Just because one insurer is unable to accept your application, this doesn't mean the others will too.
3. "Only the bread winners need life insurance."
It's important for the main breadwinner of the family to get covered, as the family is dependent on your wage, but even stay-at-home parents need life insurance. Consider how much it would cost to keep your family home running if something unexpected were to happen. Childcare alone can be a significant expense and a life insurance policy would provide a payout that could help to cover this and other costs.
4. "I've got no strings - why would I need life insurance?"
This is one of the most common myths about life insurance. Do you have a mortgage or personal debts? Not only will these need to be covered if the unfortunate happens, but so will your funeral costs and any medical bills. If you don't have basic life insurance to cover you then the responsibility for these financial costs could be left to your closest family members.
5. "My employers cover me, so I don't need to"
Some employers will provide something called Death in Service benefit, meaning that if you died whilst in service they would pay out a multiple of your yearly salary. You will need to evaluate whether this would be enough to financially support your dependants, and if not, you should consider purchasing life insurance on top of your 'Death in Service' benefit.
6. "It's just another unnecessary expense"
This is another common argument against life insurance, but you wouldn't say the same about motor insurance. Believe it or not, life insurance cover can be a relatively small monthly cost, as little as your daily Starbucks or a monthly Netflix subscription.
7. "I'm better off saving up than throwing money away on life insurance"
This may be the case if your assets exceed your debts. If you were to consider your mortgage, personal debt, and other unexpected costs in your life, would your savings cover these with ease? It's always worth remembering that any savings you leave to loved ones could be subject to tax.. Having life insurance on top of savings could be a good way to ensure your dependants will be financially stable after your passing.
8. "Buying life insurance is too complicated"
Life insurance is something you must shop around for but this shouldn't put you off buying something so important. Using Compare Cover, you could find the right policy for you by comparing life insurance policies from our panel of trusted UK providers in as little as 3 minutes - what could be easier?
Have we answered all your previous doubts about life insurance? There's no better time than the present to get covered, simply enter your details to start comparing policies today.