5 Myths about Life Insurance That You Need To Know

Preparing for their eventual passing is something that a lot of individuals would rather not think about. However, several companies like the Gunning and Associates Insurance Company are homing on the point that preparing for death is something that individuals should consider. This is why a lot of companies offer a life insurance plan as they are designed to help a family cope with the passing of a person on the financial aspects. Before you invest on a life plan, however, there are a few myths you need to know and fully understand.

Myth #1: You Need Not Worry About Health

Though there are several life insurance policies that promise you medical help whenever you are nearing death, it is best not to rely on a guarantee-issued product like insurance. It is important to remember that most life insurance policies are designed to make sure that all the costs for your death will be covered; the keyword here being “death”. In other words, the amount to be given will be enough to get you peacefully buried and your memorial services paid. Policies that offer assistance when a person is at death’s door are few and far between.

Myth #2: Medical Examinations Are Only Formalities

Whenever you buy an inexpensive life insurance, you would most certainly notice that the insurers tend to regard medical examinations as mere formalities. The real reason, however, is that they don’t want their clients to know how seriously they take their state of health. Studies show a pattern in which smaller insurance policies will only hand out a questionnaire and a form to be filled up while a larger policy will have a person undergo full medical evaluation by a doctor of the insurer’s choice. In short, the more expensive the policy you are about to take, the more thoroughly your health will be scrutinized.

Myth #3: Only Breadwinners Need Insurance

It is long though that only the breadwinners of a family need to be insured as the coverage will replace the amount of money they will make on a regular basis. This means that insuring other family members are not essential. However, the cost of replacing the contributions of one family member, regardless of role, might be higher than what one might thought. On the flip side, insuring against the loss of family members will make more sense.

Myth#4: The Cost of Premiums Will Be Deductible

Though this is true for certain cases, the premiums of personal life insurance will never be deductible. The premiums in life insurance coverage will only be deductible under two specific occasions. The first is when the policy holder is self-employed and the second circumstance is when the coverage is used as asset protection for the business owner.

Myth#5: Life Insurance Is Not Necessary For the Young

One of the most prevalent myths about life insurance is that they are only for the old and dying. The truth, however, is that there is no certainty that a person will reach old age before passing away. Companies like Gunning and Associates Insurance company know this fact and, thus, are offering plans for young individuals. This way, they can prepare for their eventual passing and minimize financial problems to a considerable degree.