Let us talk about your death.

Well, not actually a desired topic to any people, right? Since we always remain passive to discuss our own mortality and tend to keep our face off the reality, certain myths have surfaced and circumnavigating the life insurance industry.

In this blog post we have ventured to discuss the 5 most common myths that surround the life insurance industry.

Myth 1: Life insurance is a wise investment

Simply a fantasy! If you have a term life one, you have to die so that the descendants can relish the taste of the investment. In the 1980s, it was the tax advantage of single premium policies, for which many wealthy people flocked in, as those were tax havens to them. Recently, the privilege sank as private life insurance suffered a colossal regulatory clash. Pretty simple: Insurance is insurance and not investment.

Myth 2: Medical underwriting is just a formality

A life insurer is never going to tell you how seriously they take your health. The bigger the policy is, the greater will be the magnitude of the examination.

If you are purchasing a million-dollar policy, you are going to face loads of check-ups. Even the insurer may ask for previous prescriptions and a complete medical history to asses the risk your health carry towards the policy.

If you are hiding anything, you are simply putting your insurance policy at stake.

Myth 3: Agents seldom conceal the commission

Insurance industry is the only industry where compensation is not fully disclosed. On the contrary, the thing is buried so deep that you can’t dig it out with a shovel.

This is a design that the insurance industry has maintained since long and you just need to have a good forensic expert to get a clue.

Myth 4: I’ll save money working with many agents

What is the best procedure to get a life insurance? Should you have one or several agents? Should you purchase from one or several companies?

It is always wise to have one trustworthy agent and who works for a dozen or more companies. Purchasing one online is easy and flexible but it might not be the most affordable one.

Myth 5: You can’t negotiate with your agent

Agents often pretend to play the role of a passive messenger conveying you the best offers. Why? Without any self-interest? It is because it works in favor of their financial advantage most of the time.

So there is no obligation in asking your agent for a discount and you never know what is going to turn up.

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