Tosan knows it is essential to plan for major life events, but she doesn’t know that a life insurance policy is one of the most important financial planning tools she can utilize to secure her financial future and those of her loved ones.
Her Financial Advisor had mentioned the topic of having a life insurance policy several times. She wasn’t interested as she felt she was young and hadn’t accumulated substantial wealth. Tosan thinks that life insurance shouldn’t even be a priority. Recently, she had another discussion with her advisor, and she’s grateful she did.
Here is what she learnt:
Myth 1: Life insurance is only useful after my death.
Life insurance is only useful after my death.
Permanent life insurance offers many benefits that can help you build a nest egg and make you financially independent in future and at retirement.
I have life insurance at my job; I don’t need another policy.
Your employer only covers you when employed with the company. The policy gets terminated once you leave or retire. The coverage is usually limited and may not be enough to cover your family’s future needs. Also, the only type of coverage employers provide is term insurance which only pays out a death benefit should you pass away before 65. If life is long, you may be stranded when you need coverage the most. It’s best to have a life policy customized for your future needs.
I don’t need life insurance if I am young, single and healthy.
The best time to get life insurance is when you are young and healthy. You can lock in your insurability with good health. Also, the younger you are, the cheaper your premium rates and the more time your investments have to grow and earn compound interest.
Tosan is surprised that her previous knowledge about life insurance was based on misconceptions. Now that she has the fact, she’s happy to get the life insurance policy that’s right for her.