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.
Lee Bromfield, CEO of FNB Life says “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.”
Bromfield demystifies common myths that consumers have about life insurance:
- 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 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 a 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 that have life cover.
“Moreover, people that engage in dangerous hobbies and habits like smoking are also eligible for life cover,” explains Bromfield.
- You’ll be subjected to various laboratory tests 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 at 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 of conditions and ends when you leave your job. Solely relying on this cover can leave you uninsured and result in you paying hefty premiums if you take cover when you are much older.
“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 services provider to avoid getting misleading and inaccurate information,” concludes Bromfield.