Life insurance policies are pretty complex. Life insurance policies generally have many small details that one needs to carefully consider before they plan on buying one. Arriving at the right kind and an appropriate coverage amount is necessary through ample research. Generally, it is easier for people to understand an insurance policy on technical basis compared to them getting an understanding on what sort of coverage they require and how much of it is necessary.
On your hunt for the perfect insurance policy, you will get to hear several opinions. Let’s look at the most common myths related to life insurance policies and how they distort the reality.
1. You are single and do not have any dependents, so you do not need coverage
People might tell you that if you are single and do not have any dependents; getting a life insurance policy is useless. Do not make the mistake of believing them. Single people with no dependents also need insurance so that their individual debts and medical bills can be covered. You do not want to leave an inheritance of debts and due expenses for your loved ones to handle.
2. Your life insurance coverage needs to be twice your annual salary
Every person’s requirement is different when it comes to insurance policies. This is exactly why there are several different kinds of insurance policies for you to choose from. One must choose a policy that falls in to his circle of needs. Things that you may need the insurance to pay for, might include your medical bills and also your debts if you have any. Apart from that, you may also want it to support your family. Keeping all these factors in mind, choose a policy wisely.
3. Your term life insurance at your workplace is enough
Sometimes this is true. Other times, it is not. It generally depends on the nature of the life insurance coverage provided by your workplace. For a person who is single and has good and modest means, chances are that his term life insurance coverage will be sufficient for you. In case you are married or have children, then added coverage options may be essential.
4. The expenditure of all your premiums is deductible
In most of the cases, the expenditure of your life insurance is not deductible. It is only deductible if you are self-employed and your insurance coverage is basically a way for you to protect your assets.
