What do you know about Insurance? For many people, Insurance is a big question mark. Not only that, they only know what they have heard about it. This opens room for misunderstandings about the industry stay alive. We made a list of some of the biggest misconceptions about Insurance.
Insurance is Impossible to Understand
Insurance can seem like the most complicated thing that only experts can understand. But that is not true. Life insurance gives immediate money to the people who depend on your income, in the event of your death. In summary, life insurance is a contract between an individual (policyholder) and an insurance company (insurer or assurer), where the insurer promises to pay a designated beneficiary (or beneficiaries) a sum of money (the benefit) in exchange for a premium, upon the death of the policyholder.
You can’t get life insurance if you have a chronic disease
The speech has been the same for a while: the younger and healthier you are, the better the rates you will get quoted when purchasing Life Insurance. It is well known that if you have a chronic disease, you may pay higher premiums. However, if your chronic condition is well-managed, chances are you might be able to score standard or preferred rates! Many factors come into play. If you apply for life insurance following a cancer diagnosis or a heart attack, you may be turned down, for example. But you could always reapply, assuming that your medical records demonstrate that your treatment has been effective.
Young People Don’t Need Life Insurance
More youthful individuals may think that because they are healthy and “problem-free.” In some cases, they don’t provide for a family, they don’t need life insurance. This couldn’t be further from the truth. Life insurance is just as crucial to ‘millennial’s as it is to older generations. Having a life insurance policy helps reduce prices for final bills or medical expenses you may have in the future.
Spouses Don’t Need Life Insurance
One of the biggest myths about life insurance is that only the primary provider in the house needs a policy. Think of this example: Say you’re married and your spouse stays at home to care for the house and children. If the stay-at-home spouse does not have life insurance and something happens to them, could the working spouse afford the costs of childcare or other expense that didn’t exist when the other spouse was still alive? A life insurance policy could come in handy for the family.
I have a policy through my employer
Many employers offer some type of life insurance coverage as part of a benefits package to their employees. Though this is a great way to have extra life insurance, it shouldn’t be your sole policy. That’s because the policy you have through your employers may only provide a small amount of money that may not cover what a person truly needs for their family. Also, if you change jobs, that policy ceases to exist.
The right agent can make a big difference
You must find the right agent to help you choose which life insurance is right for you. Freedom Insurance Agency can work with you to compare different policies and help you find the right solution for your life insurance needs.
If you have a pre-existing condition, start taking care of yourself; if you have to take medication, take it; if you can exercise (walking counts), do it. Adapting healthier lifestyle choices will ensure that your health improves, increases chances of not being denied, and consequently allows for a lower premium. If you lead a healthy lifestyle outside of your condition, your premiums should reflect that.
Remember, Life insurance is not an investment; it isn’t something that anyone can receive financial gain. You should look at life insurance as an opportunity to obtain security for when the unavoidable happens. It is there to protect loved ones and assist them in continuing on in the future.