So, you’re considering forking out for life insurance, but you aren’t sure if it’s right for you. We’ve all been there. You may have heard stories, myths and legends surrounding this most noble of financial endeavors, but are they true?
Myth One: My work coverage is enough
Many employers will give you life insurance as part of your work package. Sorted, right? Wrong. Your employer has you covered, but what if you switch jobs? What if you get fired? Does that cover still stand? Maybe not. Employers life insurance is also typically on the low side, so it may not be enough to cover you.
Myth Two: My mortgage provider will offer me it cheap
So listen, about that… it’s probably not going to pan out as you’d hope. When you take out a mortgage, you may be offered life insurance alongside your loan. You might think that this will be the best deal you can get, but in reality, it’s on the more expensive side of things. You’d be far better off trawling through sites like Gocompare.com to find a more suitable offer.
Another example of this is travel insurance. In this writer’s own experience, the travel insurance offered to me by the holiday provider was 5 times more than what I actually paid. Don’t be tempted by bundle deals!
Myth Three: I’m single so I don’t need coverage
Even if you don’t have people who depend on you financially, you have to consider what you are leaving behind. If you have credit card debt, this could be unwittingly passed onto your parents or siblings if you pass away. Life insurance removes this element of surprise from the equation. It also covers funeral costs, something your family might not be able to afford.
Myth Four: It’s too expensive for me
Really? Monthly life insurance payments can cost about the same price as a large mocha and a shortbread per month, which is nothing. If you still aren’t convinced, get a quote. Ask your parents. I’m telling the truth!
Myth Five: I’m not going to die yet. I’ll sort it in a bit
If you’re younger, life insurance is cheaper. This is because, statistically and medically, you’re less likely to die. So why not jump on the bandwagon when it costs less? Also, you never know what could be around the corner. The pros of saving early are well documented at outlets like theguardian.com, and everyone preaches this. Start your pension and your life insurance policy at a young age. You’ll thank yourself later on.
Myth Six: I don’t need it; my partner is the breadwinner
Ok, but what if you break up? What if they lose their job? It’s far better for both of you to be saving simultaneously; you’ll have a bigger pot when the time comes to cash it in. Prepare for every eventuality!