Life Insurance is often misunderstood. Many Kiwis think it’s complicated or not necessary. Some may even believe they don’t need it at all. In reality, life insurance is simple, and it can protect your family and loved ones when they need it most. Let’s debunk some of the most common life insurance myths and get clear on what it can do for you.
Myth 1: “I Don’t Need Life Insurance Because I’m Healthy”
It’s easy to think that if you’re fit and healthy, you don’t need life insurance. Many people believe that being young and healthy protects them from the unexpected. But accidents and illnesses can happen to anyone, regardless of age or health. Life insurance provides a financial safety net for your family if something unexpected were to happen. By getting life insurance while you’re young and healthy, you can often secure lower premiums, making it an affordable way to plan for the future.
Myth 2: “Life Insurance Is Too Expensive”
One of the biggest myths is that life insurance costs too much. Many Kiwis assume it’s unaffordable and don’t even look into it. However, the truth is, there are different types of life insurance policies available that can fit a variety of budgets. Term life insurance, for example, is often less expensive than people expect. It provides coverage for a specific period, such as 10, 20, or 30 years, and can offer peace of mind without breaking the bank. You may be surprised how affordable a policy can be, especially if you apply when you’re younger.
Myth 3: “I Don’t Need Life Insurance Because I’m Single and Don’t Have Kids”
Many single people or those without children believe they don’t need life insurance. However, life insurance can still play an important role in protecting your financial responsibilities. Even if you’re single, you may have debts like student loans, a mortgage, or credit card debt that could be passed on to your family. Life insurance can cover these costs, ensuring your loved ones aren’t left with financial burdens after your passing. It’s also worth considering the future. You may not have dependents now, but that could change down the track. Securing a policy while you’re young and healthy can lock in affordable rates for when you do have a family.
Myth 4: “My Employer’s Insurance Is Enough”
Some people believe that the life insurance provided by their employer is enough coverage. While it’s great to have this benefit, employer-provided life insurance often isn’t sufficient to meet all of your family’s needs. Most employer policies provide coverage that’s one to two times your annual salary. While this might seem like a lot, it might not be enough to cover all future expenses, such as mortgage payments, living costs, or children’s education. Plus, if you change jobs or lose your job, you may lose your life insurance coverage. Having your own policy ensures you’re always protected.
Myth 5: “Life Insurance Only Benefits My Family If I Pass Away”
Another misconception is that life insurance only comes into play after you die. While the main purpose of life insurance is to provide a payout after death, some policies offer living benefits. For example, some life insurance policies can provide financial assistance if you’re diagnosed with a terminal illness or face a serious injury. This can help cover medical costs, loss of income, and more. Life insurance can be a versatile tool for protecting yourself and your family during tough times.
Myth 6: “I Don’t Need Life Insurance If I Have Savings”
While having savings is essential, it might not be enough to cover all the costs your family could face if you’re no longer there. Funeral costs, ongoing bills, mortgage repayments, and children’s education are just some of the expenses that may need to be covered. Even a large savings account can be quickly drained by these costs. Life insurance ensures your family has the financial support they need, without relying solely on your savings.
Myth 7: “It’s Too Late to Get Life Insurance”
Some people think it’s too late to get life insurance, especially if they’re older. While it’s true that life insurance can be more expensive as you age, it’s not too late to get coverage. Many policies are available for people over 50, and it’s always better to have some coverage than none at all. If you’re concerned about cost, talk to a financial advisor about the types of policies available. There may be options to suit your needs and budget.
Why Life Insurance Matters
Life insurance is about protecting those you love. It’s a way to ensure your family can manage financially if you’re no longer there to support them. Whether it’s covering funeral costs, paying off debts, or providing for your children’s future, life insurance offers peace of mind. Knowing your family is protected can give you confidence that they’ll be taken care of, no matter what happens.
How to Get the Right Life Insurance
Choosing the right life insurance policy can be overwhelming. There are many types of policies, each with its own benefits and costs. This is where working with an independent advisor can help. An advisor, like Andre Stokes from Mortgage and Insurance New Zealand, can walk you through your options, explain the benefits of each policy, and help you find one that suits your needs and budget.
Call to Action: Protect Your Future Today
Don’t let life insurance myths keep you from securing the protection your family needs. Now that you know the facts, it’s time to take action. Contact Andre Stokes today for a free consultation. Andre is here to answer your questions and guide you in choosing the right life insurance for you and your family.
Call Andre today to get started – it’s easier than you think to protect your loved ones.
