The Five Biggest Misconceptions About Insurance
1. “I can buy life insurance on line for less that I can from an insurance broker.
Actually, no you can’t. The insurance companies don’t offer any discounts or lower rates to those buying on-line. The on-line cost is the same as what I can offer you. The difference with my quote is that it comes with my experience and expertise in finding the life insurance policy that best fits your needs. I help make sense of all the fine print. If you can make use my knowledge to help you, and it costs you no more, why wouldn’t you take advantage of what is essentially ‘free’ consultation?
2. “I got a policy years ago. I don’t need anything else.”
That may be true. However, there is a really good chance that it may not be providing the protection for you and your family that you think it is. Let me ask you this; have you…
gotten married/ gotten divorced/ in a new common-law partnership
welcomed children or grandchildren into your family
bought a house or condo/ sold a house or condo
changed jobs/ started a new job/ started your own business
making more money/ making less money
…since you got that last policy? If you answered ‘Yes’ to any of the above, you are at least due for a review. If you answered ‘Yes” to more than one, then you may not have the right coverage for your situation. At the very least, a check-up is in order. Remember, you never pay me for my services.
3. “I have life insurance coverage through my work.”
That’s great that you have that coverage. However, most group plans provided by your employer only have a set amount of coverage. It could be 1x your annual salary, possibly less depending on the plan. Is that really enough to provide for your family should something happen to you? What if you change jobs, and go to an employer with less coverage, or possibly no coverage at all? It’s always in your best interest to have a plan in place that you are in complete control of.
4. “My wife/ spouse/ partner/ significant other is at home and doesn’t need insurance.”
That comment usually comes from someone who thinks that life insurance coverage is only to replace lost earnings, and since that person doesn’t have an income producing job, they don’t need coverage.
Let me ask you this; if something happened to that stay at home partner, and you had to do it all yourself, or find someone else to do it, how much would that be worth to you? Someone to be;
Family nutritionist/ cook/ baker/ grocery shopper
House cleaner/ laundry
Doctor/ nurse/ therapist (multiple disciplines)
Taxi driver/ kid’s activities co-ordinator/ head cheerleader
Kid’s tutor/ homework monitor/ volunteer at the school/ parent council
24/7 on duty
You get the idea. That person at home is irreplaceable at any cost. In fact, there might be an argument that in the family unit, the stay at home partners’ value to the family might be more than the income earner. Also, remember that the main breadwinner may need time off work to deal with the loss of the stay at home partner.
5. “I was declined for coverage years ago, and was told that I would never be able to get insurance.”
I am sorry to hear that. If you were declined for a health-related reason in the past, and you have been in good health for several years since, there is a possibility that you may be approved now. There are also insurance companies now that do specialize in coverage for those people that have certain health issues, and are unable to get traditional life insurance coverage. So being declined at some point in your life doesn’t necessarily mean you can never get coverage. If having coverage is something that is important to you and your family, then let’s see what options we have available to us.
