Are you thinking about purchasing life insurance but aren’t sure what you need to know or how to go about doing so? To say the least, the procedure can be perplexing for first-time life insurance buyers. You can always visit a Life insurance advisor to make the process easy and fast. It might be difficult to know what’s what when it comes to the various misunderstandings about taking out a policy.
Here’s why they don’t have to get in the way of helping to financially safeguard your loved ones.
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Myth 1: Insurers won’t pay out if you’ve had a COVID-19 vaccine
The American Council of Life Insurers affirmed in March 2021 that the COVID-19 vaccination had no influence on an insurer’s choice to pay out claims. Furthermore, the vaccination is rarely utilised to establish your insurance coverage eligibility. In fact, because the vaccination decreases the chance of dying from COVID-19, it may make coverage available to persons with underlying health issues.
Concerns about whether COVID-19-related fatalities are covered by whole life insurance are likewise baseless. In most situations, infectious disorders like COVID-19 are covered by life insurance policies.
Myth 2: Life insurance is expensive
One of the most common misconceptions regarding whole life insurance is that it is too expensive. According to the 2020 Insurance Barometer Study from marketing and research firm LIMRA, more than half of Americans overestimate the cost of term life insurance by three times its true cost.
Premiums might be rather modest in actuality, especially for younger generations. “Their expenses will be small, perhaps comparable to their Netflix subscription.”
To acquire accurate life insurance rates, use internet calculators, consult with a fee-only financial counsellor, or chat/visit life insurance advisors.
Myth 3: You don’t need life insurance if you’re young and healthy
Although you may not think about your mortality while you’re young, purchasing insurance early can help you lock in inexpensive rates. This is advantageous since the cost of insurance coverage might rise as you become older.
The cost of insurance for younger, healthy people is really low. According to the 2020 Insurance Barometer Study, 40% of individuals wished they had obtained life insurance when they were younger, which is fairly unsurprising.
Another issue to consider is your future insurability. If you encounter a health issue before purchasing life insurance, you may find that your options for cheap coverage are limited. Guaranteed insurability riders, for example, allow you to get extra coverage in the future without having to take a medical test.
Funeral expenses might also be covered by whole life insurance. While it may not seem important when you’re young, events like the pandemic serve as a reminder of how unexpected life can be.
Myth 4: If you have health issues, you can’t get it
Although insurers normally evaluate your health to determine prices and coverage amounts, having a pre-existing disease does not imply you can’t acquire whole life insurance. In reality, some programmes are tailored to specific health problems, such as diabetes or cancer.
With simple issue life insurance, you may avoid the medical exam entirely. These insurance just need a brief health questionnaire. Consider guaranteed issue life insurance if you don’t want your medical history to be a consideration at all. Acceptance is assured regardless of your health status, as long as you are between the ages of 40 and 85.
It’s important to consult a financial advisor or life insurance agent to make sure you’re applying for the right type of policy. If you apply for coverage with a known illness and are declined, it can act as a red mark on your file.This can put you in a different risk class, which may lead to higher premiums in the future.
In the event you have a chronic illness such as Diabetes, it’s important to seek out a specialist. Matt Schmidt of Diabetes 365 says “Any time you have a health issue such as Diabetes you need to be smart with who you work with. Many online platforms and websites are not honest, and will provide fake quotes. Make sure you have realistic expectations when applying, and understand that your premiums will be more expensive.”
To be sure you’re applying for the correct sort of coverage, visit a life insurance advisor near you.. When you seek coverage with a known disease and are turned down, it might leave a blemish on your record. This may place you in a higher risk category, resulting in higher rates in the future.
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Myth 5: If you’re single and have no dependents, you don’t need it
It’s not just for breadwinners that whole life insurance is beneficial. If a parent or guardian co-signed on your school loan, a new automobile, or your first home, for example, whole life insurance can prevent the co-signer from inheriting the debt if you pass away.
Small-business entrepreneurs can also benefit from whole life insurance as a financial safety net. You can acquire life insurance to safeguard your business if you have a partner or employees who rely on you.
If you would like to hear more about mortgage applications or how Mountview Financial Solution will help you protect your needs. You can reach us by email @ 02080950120 or send us your requirements at [email protected]!