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Life Insurance Myths: Explained and Busted!

October 18, 2022 | Insurance

With everything that’s happened in the past few years, it’s only fitting that you take precautionary steps to ensure that you’re protected for the rest of your life. Keeping up with the rising cost of living whilst simultaneously saving money and making sure you have enough for your retirement, it’s also equally important to have life insurance up to your sleeve.

However, because the information is much more accessible now, it’s easier for you to get information about certain things like life insurance. But sadly, with excellent accessibility also comes some myths and false information that may cloud your judgement.

That’s why when it comes to life insurance, it’s worth getting expert life insurance advice from an expert wealth protection financial adviser to ensure that you’re taking the right step towards financial security. On top of that, knowing the different myths and understanding the truth can help you make wiser financial decisions that will benefit you in the long run and give you peace of mind, should you ever need to make a claim.

Different Myths About Life Insurance That You Should Ignore

Myth #1: When They Ask Less Medical Questions, You Get Better Coverage

Just because you don’t have to provide a full medical questionnaire doesn’t mean you’re working with an excellent life insurance policy. The truth is, it’s always important to have full disclosure, especially when it comes to medical matters.

That’s precisely why it’s essential to get to know more about the package you’re getting and that you should get thorough life insurance advice. The more you know and understand, the more likely you are to make a better decision and get the right policy that works for you.

Myth #2: If You’re Single, You Don’t Need Life Insurance

If there’s anything you should invest in, it’s yourself. So whether you’re in a long-term relationship or you’re single, it’s always a good idea to start taking care of yourself as early as now.

You have to remember that the reason why you’re getting insurance is that you care about you and your family – and you don’t want you or them to suffer from an unfortunate incident. Having insurance as early as now is the best way to ensure that you’re protected should you suffer a serious illness or injury and become unable to earn an income or pass away.

Myth #3: Life Insurance is Expensive

As mentioned earlier, it’s essential to invest in yourself. While life insurance can seem like an unnecessary expense, remember that you’re ultimately protecting yourself and your family.

If you have minimal additional cash flow to fund life insurance premiums, there are different funding options available. For example, life insurance, total and permanent disability insurance (TPD) and income protection can all be funded from your superannuation fund. Alternatively, you can select different waiting periods, benefit periods, premium structures, and extra benefits which all impact what your policy will cost.

Myth #4: I Only Need Life Insurance When I’m Older

Life happens – and it can happen at any moment. So while you may think that you’ll only need insurance when you’re older and have a lot of obligations, it’s always a good idea to be prepared. You can get a policy built for your needs, which can have you covered for the rest of your life.

In fact, as age, gender and health are assessed when taking out a policy, and younger people are typically in better health, the costs will be less and more beneficial policy terms will be available to you. As you get older your policies will cost more.

The Bottom Line: Start Getting Life Insurance Advice as Early as Now, So You Can Stay Protected

By now, you probably have a better idea of what kind of life insurance policy you want to get. But remember, it’s always important to get life insurance advice from a professional wealth protection financial adviser and to know what you’re getting into.

At the end of the day, it’s up to you to decide. But if you’re going to get a life insurance policy, it’s important to start as early as now.

Are you seeking life insurance adviceCoastal Advice Port Macquarie offers financial planning services in Port Macquarie and the Mid-North Coast. Our team of experts work closely with their clients to create suitable strategies that offer peace of mind to have the financial lifestyle they desire. Call our office or book online to secure your complimentary first meeting!

DISCLAIMER: The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group, Sydney Wealth Advisers, Coastal Advice Port Macquarie and Coastal Advice Ballina Byron are subsidiaries of Coastal Advice Group Pty Ltd which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.

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