Life insurance is one of the major insurance coverage options that people tend to misunderstand the most. However, life insurance is an incredibly important thing to think about and to understand before you either dismiss it as unnecessary or decide to get it.
The following are some of the more common myths about buying life insurance:
- Agents disclose their commission – Knowing what an agent will get from certain companies in commission can be helpful in knowing their bias – but they actually do not have to disclose their compensation. This means that you should make sure to compare different insurance policies and not just go with whatever an agent recommends.
- Health isn’t a concern – Any health insurance company that advertises the fact that your present health doesn’t matter when purchasing their policy is a policy you should be careful of. More often than not, those policies will be much more expensive than the typical health insurance policy and the payout will be minimal – just enough to cover funeral expenses in many cases.
- Medical exams are just formalities – The larger the policy is you’re trying to buy, the more carefully your medical history will be scrutinized. They will use your past health issues as a way to assess your risk.
- You can’t negotiate – Your agent can actually negotiate the terms of a life insurance policy on your behalf!
Keep these myths about buying life insurance in mind and contact us at CCW Insurance for additional information.
Image Source: freedigitalphotos