8 Misleading Life Insurance Myths
Myth # 5: Only Breadwinners Need Life Insurance Coverage
There is nothing like that, even a homemaker needs to be insured. If you take into account the cost of replacing the services formerly provided by a deceased homemaker with professionals’, it would come much higher than you think. Hence insuring against the loss of a homemaker will offer you coverage for the expenses associated with child care, kids’ tuitions, cleaning and daycare costs.
Myth # 6: I Should ALWAYS Buy Term and Invest the Difference
Not necessarily. Even though the term life insurance is less costly than the permanent life insurance but it is more advisable to buy the latter. A permanent life insurance policy provides you coverage until death. Where else in term life insurance, coverage is offered for a specified term or number of years i.e. 1 to 3 years. Here the premiums charged are initially low, but there is always a risk of the cost of term life coverage becoming unreasonably high in later years. Therefore, buying an expensive permanent life insurance with fixed premium will be a better bet than a less expensive term life insurance whose premium sky rocket when your renew your policy for another term.
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