In today’s time, everyone knows the importance of getting a life insurance plan. Having life insurance in Boulder can help to protect your family if something happens to you. Opting for life insurance is a sound risk management decision that protects an individual against risks of:
- Mortality (death or disability)
- Morbidity (critical illness)
- Longevity (annuity and long-term guaranteed returns)
- Market unpredictability (participating or non-participating products), and
- Financial indiscipline
Despite the fact that life insurance is important, there are still many misconceptions and myths concerning life insurance. Let’s look at some of the common myths and gain the right knowledge that will help you to make a sound decision.
Myth 1:
Life Insurance is very expensive
Reality: This is one of the most common myths concerning life insurance. An insurance plan is not always expensive. With proper research and knowledge, you can easily find the best and most affordable plan for your needs. There are several plans available in the market today with lower premiums that assure an impressive life cover. Besides, these life covers allow your nominees to meet their specific needs.
Myth 2:
Life insurance is only useful after death
Reality: Life insurance provides coverage against various risks. In fact, an insurance policy is a risk management tool. Risks are not only associated with dying but also with living too long. For instance, after retirement, an insurance plan can help you in managing your expenses. The policy also covers the risk associated with investments that can be impacted by improper financial planning, lack of financial discipline, or market volatility. In short, life insurance can help you secure your financial future.
Myth 3:
There is no need for insurance if you are young, single, and healthy
Reality: Life insurance is one such product that must be purchased in advance. You cannot buy it when you actually need it. The perfect time to purchase a life insurance plan is when you are young. At this time, there are higher chances of getting a life cover at very low premiums. The benefit of buying a life cover when you are young are many. For instance, if you have a personal loan or student loan, the loan can be protected from becoming a burden to your parents and loved ones to a risk of disease, disability, or death. Moreover, the policy can protect your family, or cover health-related expenses, and retirement expenses when you grow older.
Myth 4:
People who are too old or have a pre-existing condition are not eligible for insurance
Reality: Just because a person is too old or has a pre-existing condition, doesn’t mean that he/she is not eligible for life insurance. In fact, higher age usually means very attractive annuities. Also, the insurance companies cannot refuse to cover a person or charge more just because he/she has a pre-existing condition. A pre-existing condition is simply a health issue that you had before the starting date of new health coverage. However, in the case of a pure risk policy, the cost of insurance products is defined using average assumptions of health conditions. When the factors like age and medical conditions are outside of the average assumptions, they are priced accordingly to cover up the higher risk.
Myth 5:
Claim Settlement in a life insurance policy is a hassle and the insurance company can deny or hold the payout
Reality: the settlement of claims by insurance providers is one of the biggest concerns that people have while purchasing an insurance policy. It is vital to note that a claim is settled for complete benefits only for active insurance policies. It is a contract of highest good faith. Just make sure to pay the premiums regularly to keep the policy valid. Many insurance companies generally provide a certain grace period for monthly premium mode policies. Paying premiums on time can help avoid any lapses. Also, with digitalization, the claim process has become much more hassle-free.
Conclusion:
So, these are some of the most common myths associated with life insurance. Don’t let these myths impact your decision concerning buying a policy. Since each individual has their own financial needs, it is possible that what might suit one may not be the suitable option for another person. Therefore, it is better to consult an advisor when looking for the best life insurance in Denver for your specific requirements. You can also compare various available options online provided by different insurance providers. Based on the comparison and consultation, you can make an informed decision.
