When dealing with US dollar life insurance, there are various “myths” and “misunderstandings” in the market.
Because life insurance is not as popular as auto insurance and house insurance, which are required by law to be purchased, many people do not fully understand its use value. The news of listening to pictures and sayings tends to make more people fall into the misunderstanding of prejudice.
The conveyed point is that everyone, can benefit from owning a certain type of life insurance. The editor sorted out 4 most common misunderstandings about life insurance for readers’ reference.
Myth 1: I’m too young to need life insurance
Many people think that life insurance is only needed when they are older. This is the biggest myth about life insurance.
According to the survey, most family members realize the increase in family responsibilities after the birth of their children, and then purchase life insurance.
Our experience is that the sooner you buy insurance, the better. Many high-net-worth families who know how to use insurance and time, with the assistance of professional planners, usually purchase life insurance for their children one month after their birth.
The earlier you apply, the more obvious the advantage, which is reflected in many aspects. The most direct advantage is that when you are young, your body is usually the healthiest, and the cost of applying for insurance is the lowest.
Secondly, the earlier you apply, the more benefits and goals the insurance can provide.
Myth 2: The company bought me life insurance. If I change jobs, I can take this insurance with me
Generally speaking, the life insurance that the company helps employees apply for is mainly to protect the company’s own interests.
The beneficiary of the life insurance purchased by many companies is the company itself, and the insurance compensation is used to make up for the direct or indirect losses caused to the company when the job cannot be completed.
Based on the above reasons, the group life insurance purchased by many companies cannot be taken away because of resignation.
Secondly, the company helps employees purchase part of the life insurance. Although they can be taken away in the event of resignation, they usually need to apply for or pay an additional sum of money to buy back the ownership from the company.
Finally, the employee life insurance that the company helps to purchase is usually group insurance. The amount of insurance for this type of insurance is usually calculated based on salary as the main factor, rather than the amount of insurance that the family actually needs.
Therefore, applying for supplementary individual life insurance can help our family achieve maximum protection when the job provides group life insurance.
Myth 3: Life insurance is only useful after death
Fact: Life insurance is a risk management tool.
The “death” situation is just one of many financial risks.
Throughout our lives, we still face many financial risks such as “live too long, but have no money”, “can’t work due to illness, need a large sum of money to subsidize the family”, “after retirement, need supplementary pension”, etc. .
Life insurance can carry out long-term and effective management of the above risks to ensure our financial security.
We can supplement the retirement income after the age of 65 by configuring the correct life insurance; we can also use life insurance to help us pay for the high medical expenses of major diseases that we may face after retirement; It is the most common way in American society to inherit wealth to family members or social groups, and to use life insurance to accumulate and pass on wealth.
At every stage of life, investing in different life insurance products will benefit us. Of course, the correct insurance product plan and the applicability assessment in line with the family situation are essential in this process.
Myth 4: I don’t need life insurance because my property and deposits are enough for my future life
You said a lot, you have savings and real estate, enough to cope with many future changes.
Your cash savings and property may be enough to provide a steady cash flow of retirement income for a lifetime, but have you considered any big expenses you’ll face in retirement?
The cost of nursing services for the elderly, the cost of monthly or weekly home care services, seeking additional and efficient treatment after encountering a major illness, dying expenses, etc., are all sudden and significant expenses.
Another thing to know is your mortgage on your home, or the reverse home loan used to fund your retirement.
Our family couldn’t keep the property if we didn’t have enough assets and didn’t plan to pay off the loan.
Furthermore, if we use the government’s Medicaid medical plan—many Chinese families use the Medicare card to pay for their parents’ health care—then the government will also start the Recovery Program after the death of their parents. ).
The various benefits offered by life insurance policies can help alleviate some of the burden of facing these large expenses in retirement. (full text)
