Life Insurance Myths Dispelled

Posted by siteadmin on Tuesday 2nd of May 2017.

Each year thousands of families in the UK benefit from the payouts made by life companies; sadly, many more suffer financial hardship as the result of the death of a breadwinner.

Most of us have heard about the benefits of life insurance, but many people still put off taking out a policy, believing in some of the myths that have long been perpetuated. The fact is, loved ones left behind if you were to die would need taking care of financially, and life insurance is one of the best ways of preparing for the worst-case scenario.

Myth: Premiums are too expensive

Many people are surprised to learn that it is less expensive than they’d first thought. Plus, it’s a small price to pay when you consider that having no insurance would cost your family considerably more and could result in them struggling financially.

Myth: If you’re not  working, you don’t need cover

If you’re a stay-at-home parent, just think of all the tasks you do on behalf of your family. Everything from cleaning and cooking, to childcare and beyond, might have to be paid for if you weren’t there to provide it.

Myth: It will mean having a medical

No, you are unlikely to need a medical. Most insurers only require one if you’ve had major health problems in the past. Plus, it’s also a myth that you’ll need to release your medical files or undergo yearly checkups to keep your policy in place.

Myth: if I were to die, the policy could take ages to pay out

No, it shouldn’t, especially if the policy is written in trust. If you thought you had to be incredibly rich to need to set up a trust, you’ll be pleased to know where only life insurance is involved this is a simple formality now widely used to help pass money on swiftly and efficiently to loved ones on death. This form of trust is a legal arrangement that helps ensure that the payout from your life policy goes to whoever you choose to receive it, meaning you can control where your money goes. In addition, the payment wouldn’t have to wait until probate, the legal document required to administer your estate, has been granted. Obtaining probate can be a lengthy and time-consuming process. However, if a policy is written in trust, the proceeds can be paid out once a death certificate has been obtained.