Top Life Insurance Myths

Top Life Insurance Myths

The Cheapest Life Insurance, today looks at all those things that you hear about life insurance, only to discover that they aren’t quite true.

So if you’re looking for cheap life cover at the moment and are a little confused, be sure to read our informational blog first!

Life Insurance itself is not really a simple thing.  Even level term life insurance needs to be carefully considered so you can make sure you have the right amount of cover for your needs.

1.I’m single and I don’t have any children or a partner, so I don’t need any kind of life insurance policy do I?

This is true in some cases bit you should consider that if you pass away personal debts and medical or funeral bills will need to be paid.  They are not written off and usually go to your closest family.

2. I have life insurance at work is that enough?

It may be but then again, it may not be. It all depends on the level of cover that you have and the value of the policy.  For example, if you have a mortgage for £100’000, debts to the value of £10’000 and dependents, a work based life insurance payout of £50’000 won’t necessarily cover all this should you pass away.  However, it can contribute towards the total sum you need to insure yourself for.

3. Life Insurance is an investment isn’t it?

This is definitely not the case.  Life Insurance is not money invested.  You pay into a policy over a specific term (except in the case of Whole of Life Insurance whereby you could pay in far more than your family will get out) and should you die within the terms of that policy then the sum assured will be paid out. If you do not die and the policy ends then you will not get any cash back.

4. Only those earning money for the home should have life insurance?

The value of the support around a working family is actually very high.  For example your partner may not work a job but they may be the main childcare provider.  Therefore, you should consider this whenever you are thinking about the level of life insurance you might need.

5. I am better saving my money for my family

This again may or may not be true depending on your circumstances.  For example, if you have considerable assets and lots of savings, then life insurance may not be necessary.  However, in this case you should know that those assets will not become available to pay off debts, or a mortgage until they have been officially dealt with. Equally, if your assets are over a certain amount they will be liable to inheritance tax. Therefore, sometimes in these kinds of situations it can be a good idea to put a life insurance policy in to trust as this means no inheritance tax and a much faster pay out for your loved ones when they need it most.

If you are currently looking for the cheapest life insurance options for your needs, why not contact us for quotes from our panel of leading insurers?

The information provided in this blog is not advisory.  We recommend that you gain independent financial advised from a qualified source should you have questions or require more information about life insurance. cover. 

 

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