Life Insurance Lowdown

Insurance is designed to protect one from catastrophes. One thing you need to realize is that it isn’t necessary to buy every type of insurance available. However, if you do need insurance, don’t shirk this duty just because it’s another job you gotta do! The problem with insurance is that there are so many myths floating around that many people are quite confused and this may be one of the reasons why many people still remain uninsured. This time, I am going to touch upon two such myths. If you believed in any of them, it is time to change your outlook. So please read carefully:

I NEED Life Insurance: This is a myth that has been propagated by life insurance companies to increase their sales. Fact is not everyone needs to have a life insurance policy. Yes, you heard me right — life insurance is designed to take care of your dependants after your death. So, who exactly is a dependent? Usually spouses, children and parents… anybody who will be affected by the loss of your income. So, if you don’t have any dependants, then why are you paying those hefty premiums?

Only earning members need life insurance: Agreed, this is a great ego booster, but reality can bring you down with a thud. Your spouse may be a stay-at-home mum/dad. Just imagine how much this person is reducing your expenditure by multitasking. Childcare, housekeeping, food preparation, home accountant, and school transportation — all this would cost you a bomb if you tried to get it done outside. So, if the absence of your spouse and any other member of your household is going to cause you a financial hardship, go ahead and insure them as well.

If you enjoyed this article, please bookmark it at del.icio.us »

This entry was posted on Tuesday, August 22nd, 2006 at 10:28 am and is filed under Reviews. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.