Think you know everything about life insurance? Think again. We busted 10 myths for you.
Myth 1: I’m single with no children- I don’t need life insurance
You might not have people depending on you financially but what are you leaving behind?
If you have debts or you know your family isn’t too well off, the payout you get could help with that and any funeral costs.
Myth 2: My employer’s got my back - free life insurance for me, no need for another policy
You’re covered through your employer but what if you move jobs? Also, do you think the amount is enough for everything? It’s a great perk but doesn’t solve all your problems.
Myth 3: My partner brings home the bacon, so they need insurance, not me
You might not be the breadwinner, but what about all the other jobs you do?
If you’re a stay-at-home parent, who’ll look after the kids after you’re gone?
Paying for help with childcare, cooking and cleaning can be quite expensive – just because you don’t earn the lion’s share of the wages, doesn’t mean you contribute less
Myth 4: I’ve got a mortgage insurance from my bank - no need for anything else
Mortgage insurance will pay off the rest of your mortgage, but that’s it.
If you have a family and want them to keep their standard of living, paying off the mortgage alone might not be enough.
Myth 5: It’s ok, I’ll just invest my money. That should do it, right?
Unless you’re psychic, you won’t know when you’ll die and you won’t know whether your investments will cover everything you want.
It’s very risky and not something that’ll put your family’s mind at peace.
Myth 6: The government will take care of my family
The government only gives a limited amount of financial support to your family after you’re gone.
There may be a one-off bereavement payment of a maximum of £2,000, but you have to meet certain criteria and even with some allowances available, it won't replace a second income.
Myth 7: I just can’t afford it
It’s actually much cheaper than you might think.
Did you know it could cost as little as a fiver a month to get covered?
The best way to find out is to get a quote first before you decide it’s too expensive.
Myth 8: I’m not going to die anytime soon. I’ll do it later
You’re less likely to die when you're young which means life insurance is cheaper for you too.
You never know what’s around the corner and if things are cheaper now, why not go for it?
Myth 9: Buying life insurance is such a hassle
What isn’t a hassle these days?
Just like your car insurance, you can compare life insurance policies and buy online.
Some companies even offer a “buy it now” option depending on your situation.
Myth 10: Life insurance companies rarely pay out anyway
Despite what some believe, nobody’s out to pull a fast one when it comes to your finances.
Life insurance companies are obliged to pay out when all conditions are met.
Just like with anything else, read the T&Cs before signing up and there shouldn’t be a problem.