Securing your family’s financial future is the best thing you could do for them.
Having a life insurance policy is one of the ways that you can secure the financial future of your family.
However, there are myths that can make people hesitant about taking a life insurance policy.
Thembisa Mapukata, general manager for tied distribution at Old Mutual’s Mass and Foundation Cluster, said: “The main myth about life insurance is that you don’t need it when you are young. So, if you become a dad, when you are in your twenties, hearing that life insurance is best left until later when you are earning more probably makes sense. The problem is that life doesn’t always go according to plan.”
Here are four other myths about life insurance:
Life insurance is expensive.
Mapukata says the truth is that the younger you are and the more we know of your health and lifestyle, the more affordable your premiums could be.
It could be more affordable for a young healthy person to get life insurance.
You won’t be offered life cover if you have a chronic illness such as diabetes or a heart condition.
According to Mapukata, insurance providers may request that you have a medical exam and truthfully answer some questions, but that doesn’t mean that the application will be rejected.
The premiums could be higher, but your family will be protected.
If your work benefits include life cover, you don’t need your own.
If you change employers, the insurance may expire and you lose cover. A group policy is probably a “one size fits all” cover. Taking out your own policy ensures that your insurance cover suits the need of yourself and your family.
I have a funeral policy; I don’t also need a life insurance policy.
A funeral policy pays out a lump-sum amount shortly after death for immediate funeral expenses. A life insurance policy payout could be much larger than a funeral payout and can help the family in the long-term with taking care of expenses.
Mapukata said: “Speak to a financial adviser to help you plan your financial future. A dad with a financial plan is a father who puts his family first.”