Talking about death is rarely a comfortable conversation because people tend to avoid discussing what will happen at the end of their own life. However, this is not the only reason people don’t look into buying life insurance early enough. Myths and misconceptions about life insurance are aplenty, which is preventing thousands of Canadians from purchasing accessible and affordable life insurance. We want to help clear the air by debunking the 5 most common myths about life insurance, so you can start planning before it’s too late.
Myth 1: Life Insurance is too complicated
While it may seem overwhelming at first, buying a life insurance policy is actually not complicated or time-consuming. Many Canadians are not aware of their life insurance options, but it only requires some simple calculations to determine how much life insurance you need. See here types of life insurance plans.
Myth 2: Life insurance is too expensive
Far too many Canadians don’t bother to look into purchasing a life insurance plan simply because they assume it’s expensive. While life insurance is costly for some (In poor health, pre-existing condition, etc.), it can also be more affordable than you would believe; it all depends on your age, needs, and overall health. For instance, if you are relatively young, in good health, and a non-smoker, a life insurance plan could end up costing only $10 per month.
Myth 3: Young, healthy people don’t need life insurance
Just because someone is young and healthy does not mean they will always be. Despite youth and staying in shape, accidents happen, and should something happen to you, it’s best to ensure your loved ones are not burdened with your debt. For example, if you are married and pass suddenly, your spouse could be left to deal with any debt incurred during the marriage as well as mortgage payments and other expenses. If you are unmarried with no children, you will leave your family with the cost of a funeral.
Myth 4: “My employer provides me with enough life insurance coverage”
In most cases, employee life insurance plans only provide enough to cover your base salary for one or two years, which may result in shortfall over a longer term. However, this does not provide long-term financial security. Also, most employee life insurance plans are typically only valid for as long as you are with the company. You can choose to convert the coverage to a private policy, but this can cost more than simply opening a similar plan on your own.
Myth 5: Senior citizens can’t buy life insurance
While life insurance options are limited for seniors, there are still plans available. Many life insurance companies offer plans for seniors up to the age of 85 and can even purchase plans that provide coverage for survivor income, final expenses, charitable giving, and family bequests.
Acquiring the right life insurance policy doesn’t have to be a struggle. While there are a number of options available form a wide selection of providers, making the right choice is easier than many think. Now that you know the truth about some of the most common life insurance myths, you are that much closer to choosing the right plan.
If you are ready to explore your life insurance options, call Elite Private Wealth today at 905-907-4614 or contact us online to learn more.