Life insurance is a very important part of modern adult life. Getting a life insurance means that you are smart and prepared. In return for regular premium payments made by the policyholder, the life insurance company hands out a lump sum payment to the named beneficiaries at the end of the contract/ death of the insured person. This type of arrangement comes in handy in several cases and is a safety net that protects the loved ones/ dependents of the insured individual.
However, there are many common myths surrounding life insurance policies; so we decided to end them once and for all. Here are the top 5:
1. I don’t need life insurance
Yes, you do. This mindset is very delusional, dangerous even. You need life insurance to safeguard the future of your loved ones. If you don’t have any people depending on you, you are sure to leave behind a host of unpaid bills and debts. Life insurance will help take care of that, thus removing the burden of financial debts from your dependents. Only if you have all and any possible debts covered as well as your funeral plans laid out should you opt for self insurance.
2. My life insurance needs to be double my yearly salary
This is not necessarily true. You must take into account all possible factors when deciding on the amount of your insurance. It’s not easy, but a little calculation goes a long way. Cost of Premium is deductible Or is it? According to schedule C of Form 1040, the cost of personal life insurance is deductible only if the owner is self-employed and using the insurance to protect assets. In all other cases, the cost of premium is not deductible.
1. I don’t need life insurance
Yes, you do. This mindset is very delusional, dangerous even. You need life insurance to safeguard the future of your loved ones. If you don’t have any people depending on you, you are sure to leave behind a host of unpaid bills and debts. Life insurance will help take care of that, thus removing the burden of financial debts from your dependents. Only if you have all and any possible debts covered as well as your funeral plans laid out should you opt for self insurance.
2. My life insurance needs to be double my yearly salary
This is not necessarily true. You must take into account all possible factors when deciding on the amount of your insurance. It’s not easy, but a little calculation goes a long way. Cost of Premium is deductible Or is it? According to schedule C of Form 1040, the cost of personal life insurance is deductible only if the owner is self-employed and using the insurance to protect assets. In all other cases, the cost of premium is not deductible.
4. Term Life insurance is preferable
Not always, no. According to the policies of a typical life insurance company in India, permanent coverage can often prove more beneficial with respect to the overall amount of premium paid to seek the necessary coverage. Premium coverage is also helpful since it voids the risk of non-insurability.
5. Variable Universal Life Policy is preferable
Again, not necessarily. Even in the long run, a variable universal life policy may render lower cash values than those of a straight universal life policy due to its different layers of fees accounted for insurance as well as the policy’s security elements.
Not always, no. According to the policies of a typical life insurance company in India, permanent coverage can often prove more beneficial with respect to the overall amount of premium paid to seek the necessary coverage. Premium coverage is also helpful since it voids the risk of non-insurability.
5. Variable Universal Life Policy is preferable
Again, not necessarily. Even in the long run, a variable universal life policy may render lower cash values than those of a straight universal life policy due to its different layers of fees accounted for insurance as well as the policy’s security elements.
nice
ReplyDeleteThanks for sharing this impressive blog. Top LIC Agent near me
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteThank you for sharing this article . It's very helpful to know about LIC Insurance .If you are prepare for be an LIC agent .So you must read it .
ReplyDelete