Forbes.com posted an article about 5 Life Insurance myths. The article relates to myths concerning the needs for life insurance primarily.
One myth that is examined is ‘Everyone Needs to Have Life Insurance’ – this is speaking to people who have dependents and large estates. But, what about people who do not fall into these categories? The key is to purchase as much insurance as you need, so that your policy is affordable. It is worth looking into life insurance sooner rather than later, before you develop health issues as life insurance policies are medically underwritten and premiums do depend on the type of health you are in. If you anticipate you will need life insurance, then you are the type of person who should have it.
Another interesting myth that is examined is ‘You don’t have to worry about your life insurance policy after you purchase it’. A change in your marital status, familial situation, financial situation can affect your policy. You should make sure your policy is up to date and will provide adequate coverage for all beneficiaries.
So why would someone want to have critical illness insurance on top of a life insurance product?? Well, the answer is, you just never know. You don’t. Illness can strike at any time. We have previously posted about the benefits of critical illness insurance and how it provides a lump sum payment when a serious illness occurs. A life insurance policy’s benefits are known.
The critical illness policy begins when the ‘critical illness’ happens and is in place to help cover medical expenses, and ease the financial stress of a difficult situation.
You can and should have multiple insurance products to protect yourself. Long Term Disability benefits can help with income replacement, a Critical Illness Insurance policy can help when serious illness occurs and a Life Insurance policy protects your loved ones when you are no longer around.
In our next blog post we will look at why purchasing long term disability benefits and critical illness insurance benefits is a wise choice.