There is a lot of hesitation, confusion, and denial before purchasing Life insurance. The terms and coverage of the policy are tricky to understand. Most advice from family and friends about life insurance usually is inaccurate. Life insurance secures long term financial savings and protects family members. Life Insurance Professionals, like Aviva Life Insurance, help investors in understanding the policy terms. They also assist consumers in choosing a Life Insurance plans best suited for their family. To make an informed decision here are a few myths and facts about Life Insurance.
Life Insurance is expensive
False, Life insurance does not have to be expensive. Consumers misjudge the cost of Life Insurance. There are many plans at an affordable price. The cost of insurance is dependent on the coverage. It is essential to research and find a plan like Aviva Life Insurance plan suitable to the consumer’s budget and coverage requirements. The term insurance is the cheapest type of insurance. Term insurance is a type of life insurance plans that cover the insured person’s family member for some time. If a consumer with Aviva life insurance plans passes away during the policy term, the beneficiary is paid the insurance claim.
Single people don’t need Life Insurance
Not true, Life Insurance is for everybody. Single people need insurance to secure their debts and bills. An insurance plan that covers mortgages, debt, medical and funeral bills are necessary for people without dependents. Life Insurance also secures a financial plan for the future and covers retirement bills. Life Insurance also protects the descendant’s family from medical and funeral expenses. Single people can also have insurance that covers their parents. Aviva life insurance products include Retirement Plans, Savings Plans, and Wealth Growth Plans which can be helpful to single people.
Homemakers don’t need Life Insurance
Untrue, Homemakers need Life Insurance as well. Non-working individuals are usually not covered with life insurance. The worth of a homemaker is higher than estimated. The homemaker’s value includes child care, chef duties, maid services, counsellor and more. To replace this service is very expensive; life insurance can cover these costs after passing away of a homemaker. Aviva Life Insurance highly recommends Life Insurance for homemakers when kids are involved. Hence, it is essential to cover homemakers with life insurance.
Life Insurance has zero returns
False, Life Insurance has returned, depending on when the claim is made. Life insurance covers expenses that the family might be subjected after the insured person passes. The primary objective of life insurance is to provide financial stability to the family. Insurance also helps the insured person to build a lump sum. This lump sum enables comfort during the retirement life which includes personal and medical bills.
Life Insurance is beneficial only after death
Untrue. The primary objective of life insurance is to provide financial stability to the family. But life insurance also offers savings and funds for retirement that can be claimed. Insurance also covers medical bills which can be hefty.
Life Insurance is important than Health Insurance
False, Life Insurance and Health Insurance are both important. Healthcare costs are increasing by the day, so the need for health insurance is growing. Health Insurance covers a varied range of medical bills that are not covered by Life Insurance. Many uninsured people are in debt because of huge medical bills. These bills can be paid off with Health Insurance and Life Insurance. Life insurance can cover medical bills, funeral bills, and pay the family compensation.
Investments are better than Life Insurance
Not true. Having Life Insurance Coverage is necessary. If an investor has accumulated enough assets, then Life Insurance isn’t required. It is recommended to accumulate $1 million assets then life insurance coverage is not needed. Discontinuing Life Insurance coverage is a big risk. The accumulated assets can deplete over time. Even with financial stability, if the insured person has dependents, it is recommended to have insurance coverage.
Term Insurance covered by Employer is sufficient
False. The term insurance provided by the employer is sufficient for an individual without dependents. For people with dependants, these life insurance plans are not suitable as insurance does not cover much of the expenses. Life insurance provided by employers is not transferable if you change your workplace.
Everybody needs Life Insurance at any cost
Maybe. In most cases, Life Insurance is required. People with large assets can choose not to have a Life Insurance. Debt-free individuals without dependents can self insure but make sure medical, and postmortem costs are covered. Then, maybe, life insurance is optional.
Life Insurance for Spouse/Child
Some life insurance agents will attempt to sell you insurance in your wife or child’s name. This is based on the fact that women and children have a higher life expectancy. In this case, the cost of the insurance is cheaper. If you are the breadwinner, then it is wiser to insure the breadwinner. This is done by insurance agents to meet sales.
Life Insurance does not cover terminal illness
Not true, life insurance does cover terminal illness. If the insured person, gets a critical, terminal illness then 25% to 100% of your policy is paid. In the case of specific conditions like heart attack, stroke, cancer or another end-stage kidney failure, accelerated benefits can be claimed. These payments can be used to pay medical bills and recover or cover your family’s expenses. The drawback of accelerated benefits is the payout is discounted.
Cost of Life Insurance needs to be twice the Annual salary
False, the payment made towards life insurance is not dependant on annual salary. Life insurance can be held by non-salaried individuals too. The cost of life insurance varies to each person with different budgets and dependants. In addition to medical and funeral bills, Life Insurance may need to cover mortgage, debts and provide for the family for years. With varying situations to each consumer, it is recommended by Aviva Life Insurance to do a cash flow analysis to determine the amount to be invested in life insurance.
To conclude, consumers choose a Life Insurance that is best suited to their lifestyle and budget. It is important to consider personal finances, age, dependents, debts and health. There are many Aviva Life Insurance Product and Plans in the market for consumers to choose. Make sure to research and sift through the various insurance plans and options before choosing a plan.