More Life Insurance Myths to Avoid

We already discussed some of the most common life insurance myths in our previous articles. And there's more. Once again, we're sharing these myths with you so that you can be guided accordingly and get an insurance policy that you need, at premiums that you can afford.

So if you're ready, then read on...

Myth #1: Life Insurance is Expensive

As if your mortgage, utilities, and your daily expenses weren't enough, you are also expected to spend money on life insurance! And this is probably why most people think life insurance is expensive. But the truth is that you actually save more when you have insurance than without one. Let's put that into context. Without life insurance, your family would suffer financially when you suddenly die and leave them with your debts. Meanwhile, if you have life insurance coverage, they could use the lump sum payment they will receive to pay off your debts and other expenses. In other words, it would cost more in the long run for your family to be without life insurance than when you have one.

Myth #2: You Have Enough Insurance

This is a tricky one. Unless you have consulted with a financial adviser or a life insurance broker, you will never know exactly whether you have adequate insurance. What's more is that aside from your credit card debts and other financial obligations, you also need to consider the ongoing expenses your family will have once you're gone. They still need funds for their daily expenses, utilities, and your children's education. But when you die, you will leave a void in your family's income, and you need to make sure that your insurance would be enough to fill that. Otherwise, they might be forced to dip into your hard-earned savings.

Myth #3: Insurers Don't Pay Up

Of course insurers pay up--otherwise they'll definitely have problems with the law. But you also need to make sure that you get your insurance from trusted life insurance companies. You can do that by seeking the advice of a consultants first. He will assess your personal circumstances and provide you with personalised rate comparisons of Australia's top insurance companies. That means you get high quality quotes from only the most trusted insurers in the country.

That's the kind of work that we do at Rate Detective. So if you need insurance quotes from life insurance consultants, contact us today to get started!

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Published on June 6-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.

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