Life assurance is among most critical components of the financial plan of an individual. However, there are many misunderstanding about life assurance, mainly due to the way assurance products have been sold over the years. This article highlights some of the most common mistakes to avoid when taking Life insurance Mississippi.
This form of Assurance is for the man! A survey suggests that 45% of British men and 38% women are insured for a life cover. Again, both the percentages are quite low. Moreover, its general psyche that women who do not earn do not feel the pressing need of assurance. It was observed by Cancer Research that more than 130 women die every day due to breast cancer.
Many assurance buyers use thumb rules like ten times annual income for cover. Some financial advisers suggest that a cover of 10 times your yearly income is sufficient because it offers your family an income worth ten years when you are gone. But this is not always correct. Assume that you have very young kids. The income of your family will be depleted, when your children need it the most, for instance, during their higher education.
Contents assurance is enough! Contents assurance is enough! This is another misconception. While we get our car, house, laptops and other accessories insured, we tend to take for granted the most important part of the family, i. E., its members. Losing a family member, particularly if the individual was the sole breadwinner may amount to a sudden financial challenge.
How do you choose the cheapest policy? Many assurance buyers like to buy policies that are cheaper. This is another serious mistake. A cheap policy is no good if the assurance company for some reason or another cannot fulfill the claim in the event of an untimely death.
When the whole life policy accumulates over time, it builds cash value that can be borrowed by the owner. The whole life policy can have substantial cash value after a period of 15 to 20 years, and many investors have taken notice of this. After a period, (20 years usually), this assurance policy can become paid up which means you now have assurance and don't have to pay anymore and the cash value continues to build.
Treating this assurance as an investment and buying the wrong plan: The common misconception about life assurance is that, it is also as a good investment or retirement planning solution. This misconception is largely due to some assurance agents who like to sell expensive policies to earn high commissions. If you compare returns from life assurance to other investment options, it simply does not make sense as an investment.
There are many reasons why you should take a L/I cover. For instance, you can take a policy to support you in case of a critical illness, to manage funeral and other expenses and for financial support to the family in the future. The cover also helps in supporting the family in the event of the breadwinner's death and for paying educational expenses of the kids. There are also covers for mortgage payments.
This form of Assurance is for the man! A survey suggests that 45% of British men and 38% women are insured for a life cover. Again, both the percentages are quite low. Moreover, its general psyche that women who do not earn do not feel the pressing need of assurance. It was observed by Cancer Research that more than 130 women die every day due to breast cancer.
Many assurance buyers use thumb rules like ten times annual income for cover. Some financial advisers suggest that a cover of 10 times your yearly income is sufficient because it offers your family an income worth ten years when you are gone. But this is not always correct. Assume that you have very young kids. The income of your family will be depleted, when your children need it the most, for instance, during their higher education.
Contents assurance is enough! Contents assurance is enough! This is another misconception. While we get our car, house, laptops and other accessories insured, we tend to take for granted the most important part of the family, i. E., its members. Losing a family member, particularly if the individual was the sole breadwinner may amount to a sudden financial challenge.
How do you choose the cheapest policy? Many assurance buyers like to buy policies that are cheaper. This is another serious mistake. A cheap policy is no good if the assurance company for some reason or another cannot fulfill the claim in the event of an untimely death.
When the whole life policy accumulates over time, it builds cash value that can be borrowed by the owner. The whole life policy can have substantial cash value after a period of 15 to 20 years, and many investors have taken notice of this. After a period, (20 years usually), this assurance policy can become paid up which means you now have assurance and don't have to pay anymore and the cash value continues to build.
Treating this assurance as an investment and buying the wrong plan: The common misconception about life assurance is that, it is also as a good investment or retirement planning solution. This misconception is largely due to some assurance agents who like to sell expensive policies to earn high commissions. If you compare returns from life assurance to other investment options, it simply does not make sense as an investment.
There are many reasons why you should take a L/I cover. For instance, you can take a policy to support you in case of a critical illness, to manage funeral and other expenses and for financial support to the family in the future. The cover also helps in supporting the family in the event of the breadwinner's death and for paying educational expenses of the kids. There are also covers for mortgage payments.
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