Myths About Life Insurance – Know where you stand
Here we dispel some common myths about life insurance to help you make informed decisions about your cover.
Myth # 1 – Life insurance companies don’t pay claims
There’s a common perception that life insurance companies will do everything they can to avoid paying claims.
In fact, 92% of all life insurance claims are paid in the first instance¹.
As long as you fulfil your duty of disclosure when you apply for cover, and you’re covered for the medical condition you’re claiming for, you can be confident your claim will be paid.
Myth # 2 – I’m young and don’t have kids or a mortgage, so I don’t need it
Life insurance isn’t all about providing for debts and dependants. It’s also about looking after yourself.
Think what would happen if you became ill or disabled and couldn’t work. If you didn’t have income protection, you’d have to find another way to supplement your income – through friends or family. Having income protection means that you are more likely to be able to manage on your own.
There are benefits to applying for life insurance when you’re young and healthy. It’s generally cheaper and it means you don’t have to worry about getting cover later if your health changes (see myth #3).
Myth # 3 – I won’t be covered if my health changes
Once you start your cover, what you are covered under your life insurance for won’t change – even if your health declines.
In fact, you generally don’t even need to tell your insurer about a change in your health unless you intend to make a claim.
