Term life insurance has many advantages. But understanding term life insurance and its benefits means sifting through the myths surrounding it; and there are many myths about life insurance. These life insurance myths and misconceptions can result in too little coverage causing financial hardship for families suffering the loss of a loved one.

To avoid this from happening to you, we’ve taken a look at the most common misconceptions about life insurance to set the record straight–helping you to make the right life insurance choice for you and your family.

Myth #1: I don’t work outside the home so I don’t need life insurance.

False! Just because there’s no paycheck to replace, doesn’t mean life insurance is unnecessary. A life insurance policy that provides coverage for a stay-at-home parent isn’t so much about the money they bring in to the household, but instead about the money they keep in the household.

In fact, have you ever considered how much it would cost to pay for childcare and housekeeping in the absence of a stay-at-home parent? Don’t underestimate how much this would require, child care is expensive and is a growing cost.

Myth #2: I’m young so odds are I won’t need life insurance.

Some people are gamblers by nature and choose to take their chances by skipping out on life insurance completely. Although it is unlikely you’ll die during your working years, you’re not insuring for what’s likely to happen but instead, for the worst-case scenario.

That’s why term life insurance is inexpensive for young, healthy people. Buying life insurance now means you’ll be providing financial security without spending a lot of money for it.

For example, online quotes show that a $250,000 10-year term policy for:

a healthy 35-year old woman costs as little as $165 a year
a healthy 35-year old man costs as little as $195 a year

What’s more you may even be eligible for preferred life rates that mean the annual premiums are even less! Preferred rates are lower premiums - for the same coverage - offered by an insurer based on your health. The good news is that eligibility for preferred rates is common and could save you up to 30 per cent off the standard rate.

Myth #3: If it’s really so cheap there must be a catch.

There’s no catch to term life insurance. Your basic term life insurance policy will offer you coverage so long as you pay your premium. You buy term insurance coverage for the duration of time you’ll need life insurance, whether that’s until the kids are out of school or until your mortgage is paid off.

Plus, your premiums are fixed for the length of the term. They won’t increase even if the status of your health changes.

Myth #4: I don’t need life insurance once my children are self-supporting and my mortgage is paid off.

Everybody’s insurance needs vary. But how would your spouse manage daily living expenses without your help? And what if your spouse outlived you by 10, even 20 years?

Even if your children are no longer living at home and you no longer have large debts, like a mortgage, there still are questions you should consider before deciding that life insurance is unneeded.

Myth #5: I have life insurance through my job. I don’t need any more insurance coverage.

False. The truth is your life insurance coverage through your work may not be protecting yourself and your loved ones as much as you think. Review how much your employer-paid insurance provides and calculate whether this is enough to keep your family comfortable through the difficult times if you’re not around.

What’s more, when you leave your job for any reason, including retirement, your coverage usually stops.

Myth #6: It’s such a hassle to get life insurance.

Thanks to the Internet, getting quotes is fast and easy. There are a number of online life insurance quote services and usually, all you have to do is answer a few simple questions to get quotes. Sometimes, you can even buy a policy online.

Final Fact:

From the time you marry, buy your first home, start a family and enjoy retirement, having life insurance means you and your family have the security knowing you can reach the long-term financial goals you have set out.

Life insurance policies provide you with customized coverage for your family’s needs. Comparing quotes on the Internet can help you find affordable life insurance that will protect you and your family in the years to come.

For more information on life insurance, or to get quotes, Kanetix.ca’s life insurance quote comparison service provides instant online quotes from some of Canada’s most recognized and trusted life insurance companies.

Insurance, life insurance quote

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Critical illness cover (CIC) is a type of insurance which provides a significant one-off payment if you are diagnosed with a specified life-threatening condition - specified being the important term, because if your illness isn’t in the terms and conditions - you won’t get the payment. Over recent years, critical illness cover has gained in popularity due to lower costs and apparent simplicity.

Critical illness insurance can be sold as part of a mortgage package or additionally as a stand-alone policy. Critical illness cover can also be commonly associated with life insurance, with certain CIC policies paying out either on the diagnosis of a particular illness or on death, but not both, whilst other CIC policies pay out in both events.

When you first purchase the critical illness insurance policy, there might be an option for buy-back insurance, this would permit you to buy additional critical illness cover or life insurance, typically at a minimal cost, after you have made a claim on your existing CIC policy. It is often worth considering such an option, as the survival rates from a critical illness are usually very good and it can be extremely difficult to obtain new cover following a critical illness. Buy-back critical illness cover usually protects against the three major critical illnesses: heart attack, stroke and cancer from which you are most likely to recover, but also risk an attack later in life.

Bear in mind that when you take out life critical illness insurance, there is a standard waiting period between diagnosis and possible payout, from six months to a year for certain conditions, such as total permanent disability. However, if the diagnosis is very transparent, it is possible that the insurer would consider waiving the waiting period. The maximum payout varies from policy to policy thought it’s not unusual to see capped payouts of ?500,000 or ?1 million, though cover for higher amounts might be available on request. When the policy is sold as part of a mortgage package, the lump sum is designed to pay off the loan on the home, but with other policies, there may be no restrictions on how you use the money. Suggested uses may encompass covering living expenses whilst you are off work, though the money could additionally pay for private medical treatment, carer services, home improvements, career retraining, help for your dependents and even a holiday or break away.

Nearly all critical illness insurance policies cover seven main conditions: cancer, heart attack, stroke, kidney failure, coronary artery bypass, multiple sclerosis and major organ transplant. Policy exclusions in critical illness insurance may include Alzheimer’s or Parkinson’s disease if diagnosed after the age of 60. Don’t be seduced by long lists of ailments - as other policies may include these but under a broader heading. It is important to note prior to taking out a policy that there may be certain exclusions in the insurance contract which may prevent payout due to life choices and circumstances. According to the Association of British Insurers, the most common exclusions include:

* Aviation

* Criminal acts

* Drug abuse

* Failure to follow medical advice

* Hazardous sports and pastimes

* HIV/AIDS

* Living abroad

* Self-inflicted injury

* War and civil commotion

The consumer organisation Which? estimates that two thirds of the population suffer from a critical illness at some point in their lives. However, whilst the principle of critical illness insurance might be relevant, it is always worth ensuring your policy meets your exact needs, so if the worst happens, you’re not caught out by the small print. It’s important to shop around for quotes and different policies. Comparison sites such as moneynet and moneysupermarket will allow you to do this.

Resources:

Critical illness insurance guide

Critical illness insurance price comparison research

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About Rachel:

Rachel lives with her high horse in the Scottish mountains, near Edinburgh. Rachel writes for the personal finance blog Cashzilla:

http://www.cashzilla.co.uk

critical illness cover, Critical illness insurance, critical illness insurance policy, Insurance, life insurance

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Third party offers a measure of coverage to policyholders, including protection against fire and theft. The law requires we at least have third-party coverage with indemnity to protect us against accidents that occurred on shared roads. Under the law if you cause an accident you will pay for the damage, injuries, medical treatment, legal, and other costs out of your pocket. Third Party Coverage is a protection then “against other people’s claims against you.”

If you have third-party insurance with “fire and theft” coverage then this will offer you protection in the event a fire or theft occurs. If you car catches fire, it is often a total loss, and thus the insurance company will ‘write-off’ the car and offer you disbursement to pay for a car of equal value. Thus, if you have a Security System integrated into your motor vehicle, this will reduce the costs of premiums, since if your car is stolen, the thief may be caught later, but no one can tell what the damage of your car will be.

Thus, insurance companies enjoy providing coverage to those with security systems integrated into their car. The security system will provide a measure of protection, but unfortunately, many criminals have the ability to master most technical devices, therefore, the system will not protect you entirely. Many insurance companies charge excess fees when offering insurance coverage. The fees are the worth of your claims portion. In other words, if you are in an accident and the company has to pay for the damage of the third party they may charge you a portion of the costs. A few insurance companies may dismiss the excess fees if the policyholder has “put forth all effort to halt or stop the fire or theft from occurring.”

The companies may also apply excess fees to your policy in an attempt to ‘reduce your” premiums, at the same time dropping the risks the insurance company may have in the event a fire or theft occurs. Of course, the more claims you file when covered under insurance the higher your premiums will be.

Comprehensive insurance then is a full coverage policy that will protect policyholders against fire, theft, personal injury, accidents, and so forth. Comprehensive insurance will cover your automobile and any damages, injuries, etc, fully in the event loss or damage occurs.

Comprehensive insurance will not cover you on all claims. Therefore, read the information provided by the insurance company to learn what exclusions if any exist. The exclusions is what the insurance policy will not payout. Comprehensive indemnity will cover you if the other party driving has caused damage to your vehicle. The third-party claims will not cover damage to windshields sometimes; however, the comprehensive coverage will recover the windshield in the event you suffer loss as a result of fire, theft, or accident. Since the windshields are considered different types of ‘excess charge’, thus the insurance companies often handle the claims differently. This is because the latent smash up is ‘limited to the replacement cost of the” complete windshield.

The greater part of car insurance companies will often prohibit coverage on mechanical and electrical matters. Wear and tear of your motor vehicle is also prohibited on car insurance. However comprehensive coverage will often cover “loss of use” whereas if you are restricted from the use of you vehicle, they offer rental coverage. This means you can rent a car until your car is repaired. During the take out of your policy, you are expected to pay upfront fees, including excess, portion of premiums, coverage fees and so forth before you are legally covered.

As you can see third party coverage offers less coverage than the comprehensive plans. If you want to protect your self entirely against problems then it pays to get comprehensive coverage. However, if you have an old beater then it is not worth fully covering the vehicle, thus third party liability coverage is optional. Finally, you must have insurance, since if you do not you are facing legal penalties. Do not drive your vehicle until the car is covered by an active policy.

Authored by Michael Bens. For more great information about all forms of insurance visit our free online insurance publication the Gabae Insurance Source to find the information you’re looking for!

Also you can check out Gabae Insurance Articles to find the articles you’re looking for!

Insurance, third party insurance

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