Whenever something new begins to shape up, there always seems to be lies and all sorts of truths going round about the matter. Some draw info from irrelevant sources and link them. Others simply start stating something, in an effort to seek recognition and attention. It usually takes a while before the air settles and the truth grasps its roots. Nevertheless, the truth always stands at the end of the day. The scenario is no different when it comes to matters of insurance. Misleading info leaves those who are to benefit from it to lose out and end up in regret more often than not. To clear the air on such issues, here are some lies and half-truths to chew upon and thus able to give the concrete truth about the matter of whole life insurance coverage:
1. I have no dependents, so I need no coverage
Insurance not only comes in handy to help your family but primarily you. For instance, in the event of death, the insurance company takes care of your funeral and burial expenses. Their absence would mean that your unexpected departure would have left your family members suffering to cater for your sudden emergency bills with regard to your burial. Apart from this, you also stand to benefit in having medical bills footed and even getting financial assistance to pay debts and mortgages.
2. I have insurance at work, I need no more
Depending on the number of dependents that you have, the insurance you get courtesy of your workplace may not be enough. Furthermore, the event of risk not associated with work, e.g. an accident at your home does not qualify you to getting any financial security from the work insurance, as it was not in the line of duty.
3. I would rather do term than whole life insurance
This statement is not that wise. Whole life assures you compensation in the event of your death, covering all the necessary bills and giving the beneficiaries what they should get. On the other hand, term insurance is a tricky affair. For instance, if a term ends and you wish or opt not to renew, the insurer gives you back the money. Misuse of the money or keeping it somewhere unreachable may prove hazardous in the event of your death, making the effort of investing in insurance companies pointless and fruitless.
It is usually best to get the facts right to make sound judgment and conclusion on matters with regard to insurance.