When people talk about life insurance, there is often confusion of information and a lot of fear.
Unfortunately, the general myths surrounding insurance lead to the fact that many people put it off too long for later or do not buy it at all.
Myth number # 1: There is no reason to buy life insurance when you are young.
There are many reasons to purchase life insurance at a young age.
At least, the older you are, the more expensive. One of the main factors in determining the cost of life insurance is the age of the client. The older the person, the higher his risks.
The second factor in determining the cost of life insurance is the health of the client.
If a person is absolutely healthy, his chances of dying in the near future are minimal.
Life insurance companies underestimate insurance amounts if they take on health risks.
The third reason is that a person has more time to create a sufficient reserve (capital) for the future or a pension. Since there is an opportunity to open the program for a longer period, you can save less money, the insurance amount will be higher and a compound% with each year will increasingly work for you.
And if you live in Ukraine and today you are not yet 35 years old, then you generally can not count on a pension. You will not have it. And if you start to think about it only in adulthood, what can you save yourself?
Myth number # 2: Medical insurance is enough.
Health insurance is good. But, risk and funded insurance are absolutely different products, having absolutely different goals.
The contract of risk insurance is valid for a certain period. If an insurance event occurs during this period, the insured (beneficiary) receives a certain premium. Accumulation under the contract is not formed. If during the period of validity of the contract the insured event has not occurred, the insurance company does not pay anything and does not return the money.
Cumulative life insurance is a combination of life insurance with the program of accumulation, preservation, and increase of your capital.
During the conclusion of such an insurance contract, you already choose which amount of money and for what period you want to collect. The contract is concluded with the insurance company for a long period.
Accumulated money the company invests in various tools, while annually charging you a certain percentage (guaranteed income). At the end of the contract, if nothing happens to you, you receive the amount stipulated in the insurance contract with accrued interest. Since the accumulative component is combined with a risky one, the policy ensures your life. In the event of insured events, a full insurance amount is paid on a risk-insurance basis, regardless of how many contributions you have made.
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Myth number # 3: Life insurance is bought only in case of death.
Life insurance covers not only the risk of leaving the life of the insured but also the diagnosis of health-threatening diseases, temporary or complete disability, injuries of varying severity as a result of an accident and other risks. The set of such risks can vary in accordance with the wishes and financial capabilities of the client.
Myth number # 4: It only makes sense to ensure the main breadwinner in the family.
This opinion of people is based on the fact that if an insurance event occurs with the chief earner, then his family members will be financially secure. But, an accident can happen to any member of the family. Having bought, for example, an insurance policy for the husband-breadwinner, there are no guarantees that the wife will not be seriously ill. In this case, payment on the policy is not provided for, and to pay expensive treatment and 24-hour care will have a wife from the family budget, which large expenses may not cover.
Myth number # 5: A lonely person does not need life insurance.
If a person does not have a family, children or even elderly parents who need to be taken care of, then he may have a deceptive impression that he does not have a financial responsibility to anyone. However, do not forget that such a person as himself. Who will provide it in case of prolonged illness? Who will pay for his treatment if he becomes incapacitated as a result of an accident?
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Myth number # 6. Life insurance is only necessary for people with a dangerous profession.
It is quite logical that people of a dangerous profession at work risk much more than office employees. However, no one can give any guarantees of long-term health and well-being to either of them. Our life does not only work. The probability of getting into an accident is approximately the same for both the bank employee and the EMERCOM employee if they spend the same time each day driving.
Myth number # 7. All life insurers are the same. It does not matter which company to buy an insurance policy.
The correct choice of an insurance company depends on many factors: from the policy of the insurance company, its stability, reliability, duration of work in the market, reputation. About what criteria are talking about the reliability of the insurance company,