3 Life Insurance Myths You Need to Know

Choosing the right life insurance policy for you can be a confusing affair. There are simply too many companies out there offering different policies, so it's easy to get overwhelmed by all the choices you have. It also doesn't help that many myths abound about life insurance. Not only do these myths make choosing even more confusing, it also leads you to make the wrong decision. But it is still important that you choose the right policy because your family would greatly benefit from it in case you die. That is why we're sharing with you some of the most common and destructive myths about life insurance, starting with...

  1. "I don't need it." Some people view life insurance as an unnecessary expense. But it goes beyond being just an expense, however. If you're the head of a family, the benefit that your family will receive from the policy will help them survive when you die. It could help them with the funeral expenses, their daily expenses, and even the education of your children. So while you might not personally need the policy, your family could use it.
  2. It's too expensive. If you're already cash-strapped, another expense such as life insurance may be too much for you. However, the truth is that you could get insurance for as little as $1 a day. The price of course depends on your age, health, and other factors, but the amount that you pay can provide large payouts to your family. Thus, the premiums are actually practical once you consider the cover it provides for you and your family.
  3. "My super fund has me covered." It's true that life insurance may be included in your super policy, but always make sure that the cover is enough for your family's needs. As a rule of thumb, the cover should be 10 times that of your annual salary plus other expenses your family might need. So if you're earning $100,000 annually and have a mortgage of $15,000, credit card debts of $2,000, and an annual budget of $1,000 for vacations, add those up ($118,000) and multiply by 10 ($1,180,000) to give you a rough idea of the amount of cover your family needs.
So don't let these myths mislead you into thinking that you don't need life insurance. And when you do choose a life insurance policy, choose one that adequately covers your needs and that of your family. Contact the qualified advisors at Rate Detective today and they will provide you with personalised rate comparisons of Australia's top insurance companies. Contact us today for more information!

Get your quotes now

What to find out more? Enquire now

Published on May 5-th, 2013 in Life Insurance
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.

More on this topic

Enquire about Life Insurance

Important Information

Not all providers in the market are included in the comparison.

Any information or advice contained on this website is general in nature and has been prepared without taking into account your objectives, financial situation or needs.

Related Topics