Life Insurance Guard
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Get it right with life insurance Introduction to life insurance Checklist for life insurance in the USA Common mistakes with Life Insurance |
American Life Insurance Myths
There are a lot of myths and misconceptions when it comes to life insurance.
You need to know the truth when it comes to what you are purchasing, don't just assume based
Hot Topics
- What is Level Term Life Insurance?
- Level Term Life Insurance is a form of insurance that pays a lump sum to you or your family if you die or fall terminally ill whilst the policy is in force.
- What is Terminal Illness Insurance?
- Terminal Illness Insurance pays out if you are diagnosed with an illness from which you are expected to die within 12 months of diagnosis.
- Are there any fees or extra costs to pay?
- If you are purchasing life insurance through our product partner, Life Policies Direct, then there will are no fees or other costs to pay
- How is a claim made under a life insurance policy?
- All claims are made against the Life Company who issued your policy. You will find details of the claims procedure within the policy documents they provide with your policy and in the key features document.
You need to choose the life insurance that is right for you. You can do so by avoiding these seven common myths:
Myth #1: You should buy seven times your annual earnings.
The rule of thumb that says you should have so many times your annual income isn't necessarily true. The average American has a policy three times his or her annual income. Your dependents should be able to withdraw 5% each year from your insurance policy money without having to touch the principal. If you are making $60,000 annually and you purchase three times your annual income, you have an $180,000 policy. This means your heirs will only be able to withdraw $9,000 each year.
Most people have less coverage than they need. To calculate the amount you actually need, estimate how much your heirs will need to maintain their lifestyle ( personal loans ) without you. Include the costs of child care, education and emergencies. Add up all other sources of income and subtract it from the expenses. This will show how much of a policy you need to have.
Myth #2: Agents don't give you the best deals, the internet does.
The internet is a great place to shop and research life insurance. But don't assume that you've gotten the lowest price just because it's the internet. Good agents will find a competitive rate that's comparable to your online quotes.
Often, the premiums posted on internet sites are misleading. They are ( life insurance quotes ) usually quoting you are rate that only those in the healthiest of conditions receive. They may give you an initial rate that will increase significantly in a year.
You can't just compare rates. You need to also compare the policy that you are receiving. Shop around on the internet and with various agents for the best policy for you.