Life Insurance Lies

When you shop for affordable term life insurance online, you're bound to run into a few life insurance myths. Misinformation about life insurance abounds, especially online. We'll dispel the seven biggest life insurance lies here.

1. Smart shoppers purchase a policy worth five times their annual income. Following an overly simplistic rule of thumb when looking for affordable term life insurance online doesn't necessarily make you a savvy life insurance shopper. In some cases, coverage worth five times your annual earning may not be enough. In other cases, however, that level of coverage may be excessive.
2. If you shop online, you are guaranteed the lowest rates. Looking into affordable term life insurance online is a great way to research prices and comparison shop, but you can't assume that you will automatically receive the lowest premiums. You should also talk to an agent or broker to be thorough.
3. Life insurance policies are pretty much identical except for the coverage amount. This could not be further from the truth. Every policy will contain different exclusions, or circumstances in which they won't cover a claim. For instance, your policy may not pay a claim if you commit suicide within a certain amount of time after purchasing your policy.
4. Policyholders should name their estate as the beneficiary. Doing so will require that the proceeds of the policy go through probate, which could take up to a year. Additionally, the policy will be subjected to the estate tax.
5. People with medical problems cannot get life insurance. Even if you have health issues, you can still find affordable term life insurance online. In fact, certain insurers even specialize in this type of high-risk coverage. The key to finding a policy when you are in poor health is to shop around.
6. An insurance agent will know exactly what you need. An insurance agent will not be as concerned with finding you what you need as much as maximizing commission. For example, some agents work for companies that only offer whole life policies, in which case the agent is unlikely to suggest term life coverage, even if that is what's best for your situation.
7. Life insurance is more important than disability insurance. For people under age 50, the likelihood of becoming disabled is 50% higher than that of dying. Finding affordable term life insurance online is important, but you should also investigate disability coverage.

Now that you have cleared up some of these lies, and know the advantages of term life, you are ready to make your decision about affordable term life insurance online.