10 Myths About Buying Life Insurance
Not all Australians completely understand life insurance and everything it entails. With all of the different options and policies available, it’s no surprise that the topic of life insurance can be quite confusing.
Buying life insurance is an easy and practical way of taking care of your family. It’s definitely something worth considering if you haven’t done so already.
Many Australians believe that life insurance doesn’t matter, and most of their disbeliefs come from the following 10 myths:
Myth 1 – It won’t happen to me. We all hope that nobody becomes fatally ill or dies in our family, but it’s best to be prepared with a policy just in case.
Myth 2 – I have to get a medical examination. Life insurance examinations are only required under certain circumstances. If you decide that you do not want a medical examination, you can choose a ‘no medical’ life insurance policy. Keep in mind that this option may have higher premiums.
Myth 3 – Life insurance is expensive! In reality, life insurance costs a lot less than you may think. Life insurance offers far more financial protection compared to relying on your own personal savings if the worst should ever happen.
Myth 4 – Life insurance is bundled in with my super. Many Australians rely on the super cover provided by their super fund. Unfortunately, that cover may not be enough.
Myth 5 – The government will look after you. Don’t count on this happening! If you die, get injured or are unable to work, social security benefits won’t be enough for your family.
Myth 6 – Insurance companies won’t pay. Yes, they will. A life insurer is legally obligated to do the following:
• Must assess claims quickly
• Must not delay paying claims unless there is a good reason
• Must not refuse to pay claims unless there is a good reason
When you give your insurer your medical information, make sure you answer all of the questions honestly. If a claim has to be filed and you didn’t reveal something important to the insurer, the claim may be refused.
Myth 7 – I can’t get cover with a pre-existing condition. There are many Australians with a medical condition that have been able to get good life insurance coverage. Keep in mind that the amount of cover you can get all depends on the type of pre-existing condition you have.
Myth 8 – I’ll save money by working with many agents. It’s actually best to work with one agent who writes for many companies. If you use multiple agents, you’ll have to interpret all of the information you get. So, it’s best to have one agent to sort through everything for you.
Myth 9 – Signing up for a life insurance policy is too hard. If you buy life insurance directly from a life insurance company, you can actually arrange cover over the phone or online. It only takes a few minutes, and you don’t have to worry about filling out forms or taking a medical test. Signing up for a policy isn’t hard at all!
Myth 10 – I already have enough life insurance. Sadly, most families don’t have enough life insurance. The amount of life insurance you should have is around 10 times your net earnings. If you don’t currently have this amount of life insurance coverage, you should consider getting more.
So, if you don’t currently have life insurance, do a life insurance comparison today. You and your agent will work together to get you the best life insurance to suit your family’s needs if something should ever happen to you.