Five common life insurance myths

2018-03-22 06:01

By Juggie Govender of East Coast Financial Services (Pty) Ltd – FSP 44760

DESPITE increasing awareness about the importance of having life insurance, some consumers remain confused and undecided due to myths that uninformed people spread through the grapevine. Death is usually the last subject people look forward to discussing over the dinner table. Similarly, life insurance conversations are viewed in the same light and further perpetuated by misconceptions that this form of cover is complex and not easy to take up.

There are quite a number of misconceptions that exist about life insurance in general. If you are looking to take up life cover, it is advisable to speak to a professional or your financial adviser to avoid getting misleading and inaccurate information.

FIVE COMMON MYTHS:

Only married people need life insurance

One of the biggest misconceptions about life insurance is that if you are single, don’t have children or are still young, you do not need cover.

Life insurance caters for anyone that is financially dependent on you in the unfortunate event that you pass away.

Prevailing health issues will prevent you from getting cover

You may pay a slightly higher premium than the average person if you have pre-existing health issues, due to your risk profile. However, if the health condition is well managed, you should have no challenges getting life insurance. For example, there are many people living with chronic diseases such as diabetes, hypertension and asthma who have life cover. Moreover, people who engage in dangerous hobbies and habits like smoking are also eligible for life cover, however the premiums will be more expensive.

You will be subjected to various laboratory tests or medicals before getting cover

When taking up life insurance you need to complete a medical examination to determine your risk level.

A practitioner will either ask you a few medical questions over the phone or a professional nurse may take blood tests in the comfort of your home or workplace. The process is often quick and efficient.

Wealthy people don’t need life insurance

While every situation is unique, life insurance plays a significant role when wealthy individuals pass on wealth to the next generation. It can give heirs and beneficiaries peace of mind knowing that costs related to winding up a deceased estate are catered for. For business owners, costs related to selling and liquidating the business or transferring ownership can be covered through life insurance.

I have adequate cover through my employer

Cover provided by employers often comes with its own terms and conditions and ends when you leave your job. If you need to convert a group life cover when you leave your employer, you will be older and therefore the cost will be higher. Are you adequately covered for any of the unexpected life changing events i.e. severe illness, death or disability? Will you or your family be able to maintain the current lifestyle? This article, is an excerpt from FIN24 by Lee Bromfield CEO of FNB Life.

You could contact me on 083 399 3905, my office on 032-944 3051 or e-mail me on juggieg@telkomsa.net for an appointment or further information and any other financial advice.


Disclaimer

The information is only intended to be of a general nature and should not be relied upon by any part without obtaining full details from a licenced financial service provider.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.
NEXT ON NEWS24X

Inside News24

 
/News
Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.