3 Life Insurance Myths That You Should Be Aware Of

Experts believe that with our reluctance to consider our own mortality, life insurance is rarely ever bought but sold.

Yet the underlying truth is that why people are so hesitant to buy life insurance is because they’ll never live to collect the benefits.

With that said, here are 3 life insurance myths that one should aware of so as to think things through if you’re hesitant to buy life insurance:

#1: No need to worry about my health

There are certain types of insurance that promise to offer you benefits regardless of the state of your health. That’s not guaranteed at all, considering the fact that the benefits are minimal for the first 2 years and after which, they don’t increase by much at all.

#2: Agents will provide their commission without fail

If you think you can find out what your agent’s commission is going to be, think again. Life insurance is the last industry where they have made it impossible for you to find out this information. You won’t be able to find it in the contract because it is a long held-belief that disclosing this amount is detrimental to the sale. One way to get a rough estimate is by getting a quote from TIAA-CREF which sells policies without commissions.

#3: Life insurance is a good investment

Even if the insurance industry does seem to come up with excuses every now and then about how insurance is a sound investment, it’s just insurance and nothing more. For some time it was the tax advantage which got many people to buy but it fizzled out as many don’t last for even 10 years or so. The best thing to do is buy term insurance and put the rest in your 401k savings account.