Don’t Let These Insurance Myths Keep You from Protecting Your Family

As the owner of a small business, many responsibilities fall heavily on your shoulders. Among them is the duty you have to protect your family. Don’t let the insurance myths we discuss below keep you from purchasing adequate coverage for you and your family.

Insurance is a contract between the policy owner and the insurer. Depending upon the specific contract, the insurer agrees to pay a certain amount to the family of the insured in the event of the individual’s death or some other event.

Here, we debunk 8 common insurance myths that might be keeping you from adequately protecting your family.

 

RELATED ARTICLE: 3 TIPS FOR BUILDING A LASTING FAMILY BUSINESS

 

1. Insurance Will Pay Benefits Only After My Death

The main objective of a life insurance policy is to provide financial protection to your family in the event of your death. That much is true. However, this is not its only function. Life insurance can also help you to prepare for a more comfortable retirement.

 

2. Insurance Is Only for Tax Savings

While tax savings are an added advantage of having insurance, this is not its only objective. Protecting your family is its chief purpose.

 

3. The Group Insurance I Already Have Is Enough

If you’re lucky enough to be able to take advantage of a group insurance policy, hold onto it as long as you can. However, if your circumstances should change, you could lose your group insurance coverage. Therefore, it’s best to take out insurance apart from the group insurance policy you already have.

 

4. I Am Single and I Do Not Need Any Coverage

Even if you’re single, you need insurance to take care of your own health and retirement needs. Even if you don’t have a family to look after, you surely have other liabilities. For example, you likely have loans, credit card bills, and the like. Your insurance policy will offer coverage for these liabilities.

 

5. Life Insurance Is Expensive

It’s true that a life insurance policy does cost something. However, if you look into it, you’ll find that it is not all that expensive. What’s more, you can choose a level of coverage that you can afford.

This means that you can indeed provide for the financial security of your family with a low-cost premium. If you consider the sum assured and compare it with the annual premium, you will see that it is not expensive.

Consider your current financial position, your lifestyle and your needs. Then determine the sum assured amount for the coverage you desire. Your premium amount will be based upon that figure.

 

6. Individuals with Health Problems Cannot Get Life Insurance

This is one of those insurance myths that is unquestionably false. Companies are willing to sell life insurance policies to people with various medical problems. What’s more, some companies also specialize in high-risk coverage. All the same, you must be absolutely truthful about your health issues when you apply. When you do, you will find that there are companies who will provide you with coverage, even if you have a longstanding health condition.

 

7. Buying Term Insurance Is Complex

You can buy your insurance plan either online or at an office. However you choose to approach it, the entire procedure will not take more than a single day. You’ll be able to view details about your policy online within a very short time. Even better, when it’s time to renew your policy, you can do so online with ease.

So don’t let this insurance myth keep you from buying the coverage you need, including an online term plan. This is a plan that will provide financial coverage for a specific period. Upon the death of the insured, the insurer will pay the sum assured amount to the nominee.

 

 

8. Claim Settlement Is Complicated

This is another of those insurance myths that you can set aside as false. You can process a claim process either online or offline. The process is similar in both cases. As a matter of fact, there are multiple touch points through which you can communicate with your insurer about your claim. You won’t need to rely on an intermediary because it is a transparent and hassle-free process.

 

Don’t Let Another Day Go By 

So don’t let any of the insurance myths we’ve discussed here keep you from buying the insurance policies you need. Protect your family and provide yourself with the peace of mind you deserve.