Here are, in my words, top 7 myths about life insurance for you to be aware of:
1. There is a best time to buy life insurance – Death is a certainty but the timing is completely uncertain. Unless you know exactly when, you will not get the timing right.
2. Everyone needs insurance – Not true, the irresponsible and the irrational do not.
3. It is very difficult to claim from insurance – Life insurance policies even pay out if the insured commit suicide after the policy have been in force for one year. Claiming is not difficult, getting the initial application done up properly with no mistakes or omission is.
4. My company’s insurance coverage is enough – Unless you own the company, don’t depend on it. One day, either you want to find a new company or your company wants to find a new employee and chances are, your benefits are not portable.
5. Insurance is a scheme to cheat people – From Jan to end June 2011, $218 million was paid out for claims with respect to Death, Disability and Critical Illness in Singapore. That’s $1.2 million a day. How many industry have delivered more value to their clients during the same period?
6. I get good insurance advice online – Not true if you equate “good” with professional. It is too important a topic to be dependent on web advisors who do not have to be responsible for their opinions and you probably don’t know their real names, just their “nick”.
7. Insurance is expensive – How expensive is it to pay $3 to buy $100? It’s the lowest cost option when it comes to creating an instant estate!!!
