7 Life Insurance Myths, Debunked!

Sometimes, people can be easily deceived by stories. There are things in life that we think are true, but are not. False information can hinder your personal growth and progress. So, it’s important to do your own research and believe in credible sources.

There are a lot of misconceptions about life insurance in the Philippines that many people believe in. Let’s now debunk the top life insurance myths to learn the truth about this quite misunderstood product.

Whoever said that life insurance is only for the rich has never tried checking their options. The truth is, life insurance can be affordable depending on your coverage. The amount of insurance coverage an individual needs depends on their specific situation.

Insurance policies can be adjusted and tailored according to a person’s income, earning ability, and cash flow analysis to make it affordable. You can also start with a policy that fits your current budget and just purchase additional coverage later on.

Absolute hoola-baloo! Stay-at-home parents or family members who draw no professional income contribute valuable services such as childcare, cooking, housecleaning, and household management. These services are costly for the surviving family members to replace in case of critical illness, accident, or death.

Insuring the stay-at-home family member will also allow the breadwinner to take time off work to grieve and adjust to the loss.

Pure fluff! Life insurance is important even if you’re single or married with no children. Think about the costs of personal debts, medical, and funeral bills. Who will shoulder them in the event of your demise?

Insuring yourself not only protects your loved ones or executor from the burden of unpaid expenses, but also helps you get started on your future. It can also let you leave a legacy to a favorite charity or cause you hold dear.

Some life insurance policies provided by employers are not transferable in case you leave the company. On the other hand, you may be able to convert it to a personal policy, but it may turn out to be more expensive than getting one on your own. An individual life insurance policy will allow you to personalize the coverage according to your specific needs and situation.

In addition, the group life insurance policies often cover just two times your salary. This doesn’t cover commissions or other income sources. In the event of your demise, your dependents may need approximately 10 times your salary to cover the expenses associated with your death or medical bills.

Completely untrue! The best time to buy life insurance is when you’re young and healthy because it costs the least. The longer you wait to get life insurance, the more likely you are to develop a medical condition that makes the premium more expensive.

Get life insurance while you’re still young. It will help you become financially independent and protect you from unforeseen and untoward events such as a critical illness, accident, or death.

Again, this isn’t always true. While your savings may last you through your retirement, who will shoulder the final expenses related to your death such as estate taxes, funeral, and burial costs?

If you have an unfinished mortgage, will there be enough for your loved ones and surviving family members to hold onto your property?

A life insurance policy will give you the allowance to enjoy your savings during your retirement without worrying about these expenses. Go on vacations which you were too busy to enjoy while you were working. Travel. Take up new hobbies. Do what you want with your savings and let your insurance policy cover the cost of your passing.

False! Pre-existing medical conditions such as diabetes or hypertension don’t disqualify you from getting life insurance. Your insurance premium may be higher due to your health, but typically still within reach.

Life insurance may be difficult to figure out for some people, especially with all the financial terms and math involved. However, most people regret not having it right when they actually need it.

Don’t let it be too late. Protect yourself and your family with a life insurance plan tailored to your particular needs. Drop by any of the 800 BPI branches and talk to a Bancassurance Sales Executive to know the truths behind life insurance today.