Life insurance may be among the most under-utilized and misunderstood kinds of insurance available in Ottawa. Many people fail to recognize the necessity for it, particularly in their early years, or see it as a cost they delay until it’s too far gone.
But, it’s the best way to experience at ease knowing that you’re leaving something for those you love when you’re gone. If you’ve been putting off obtaining life insurance because you’re unsure of its worth, we’ll refute the top 9 life insurance misconceptions to persuade you differently.
1. Life Insurance isn’t for the Young
The truth is that the younger you are when purchasing life insurance, the higher your rates will be and the greater the benefits you will receive. If you’re young, you’re less likely to fall ill, which means that your death will be more distant shortly. Even if you don’t have any children or partners yet, now is the ideal moment to set up your insurance coverage and make plans for the future. It is beneficial for the insurance company as it is not to be worried about paying the amount of a claim. It means they can collect more from you and give you a fair amount. It is possible to look into the permanent cash-value life insurance policy as a significant investment that will increase your wealth over time.
2. My Employer Pays for My Life Insurance
It’s a great starting point for life insurance. But, the majority of corporate life insurance policies tend to be a bit short of coverage. If something unimaginable happens, it gets possible that you will not be able to pay any mortgage, debt, or other costs you’ve left to your family. With a personal Life insurance plan, it is possible to choose the amount of coverage you want, going enough to provide for the loved ones of your family. Many people believe they get covered by their employer but do not. Make sure you know what is covered by your benefits.
3. My Salary Will Not Get Missed Because I Do Not Work
Many couples make the error of thinking they don’t require life insurance for the spouse who lives at home. However, the financial liabilities left behind in the event of a partner’s death will influence your budget. Even the funeral expenses may be higher than you expected. Additionally, if the spouse was the one who took care of the kids, then you’ll need childcare expenses that are pretty high in Ontario. Basic life insurance is better than none at all, even in the case of a person who does not provide income to the household.
4. There Is Mortgage Insurance That Will Pay the Remaining Balance
It’s always the best option for homeowners. Even if your payments mainly were utilized to pay the mortgage, your family members are not receiving income from your employment.
A life insurance policy covers all expenses that unexpectedly come to light when you’re gone. It could cover everything from funeral costs to home maintenance you could typically have done on
your own. Life insurance offers additional financial security that can help support your family members and give you protection.
5. I’m not Eligible Since I Smoke
This notion is reasonable; however, it’s not the case. There are actual “no medical” life insurance policies to choose from that are perfect for people who smoke, suffer from an existing medical condition, or are elderly.It’s also the best option for those afraid of taking medical exams. It is possible to answer a few basic questions to determine these policies and put a policy in just a couple of days.
6. Life Insurance isn’t Necessary
Even if you’re single, the financial burden of the aftermath of death could be pretty significant. The funeral costs alone can be high for families with a low income. In the absence of an insurance policy, it is not the best option when you have a loved one responsible for your funeral and the estate.
7. It isn’t Easy to Obtain Life Insurance
It’s much easier to obtain estimates online. You can either phone and speak with an agent or complete a form for an instant estimate. As we said, you can select no medical life insurance, which means you don’t need to worry about medical tests.
8. Life Insurance Isn’t Affordable
It is not the case. There are life insurance policies that meet your requirements. You can examine your needs and talk to your insurance provider about the specifics to get the best plan for you. A basic insurance policy that can leave enough money to cover funeral costs is available at a lower price than you imagine.
9. Insurance for life is wasteful of cash; I’ll never be able to get it back
Although this is not the case for life insurance policies with a term, be aware that your beneficiaries will need the funds when you’re gone. While you might not have access to the funds, the ones you love will. But, you could also choose a permanent life insurance policy with a cash value that allows tax-free growth. After you have earned money through the procedures you choose, they could get used for one of the following purposes:
- The payment gets made towards future premiums for the policy.
- A low-interest loan to you
- A portfolio of investments that is risk-free and creates wealth
- You can supplement your retirement income
- Knowing what options are open for you can be the most effective option to purchase life insurance and benefit from the benefits while you’re still alive.
Life insurance can provide many benefits regardless of whether you’re not old enough or don’t require it, aren’t able to afford it, or believe that you’re spending money for gifts you’ll never receive.
An interview with our team will help you choose the ideal life insurance policy to meet your requirements, allowing you to ensure the security of your loved family members. It is also possible to discover a reliable and low-risk investment option that will provide the financial protection you require the most.
To learn more about us, call Ottawa Life Insurance at (613) 454-1424 or contact us at info@ottawa-lifeinsurance.ca.
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