Myths about Life Insurance
ScotiaLife Financial Life Insurance coverage can provide peace of mind with products designed to protect you and your loved ones from the unexpected. Navigating what life insurance is required for you and/or your family can be a challenging task. At ScotiaLife Financial we want to make the process simple by being there throughout the process to answer any questions you may have. This article identifies the top 7 misconceptions surrounding life insurance.
- I do not need life insurance.
Life insurance is designed to pay debts, replace lost income, and pay for final expenses. If you have no debts, no spouse or dependent children, and funds set aside for your funeral, then life insurance may not be required. This is not the case for most Canadians. Complete an insurance needs analysis to get a better understanding of your situation, or speak to a licensed advisor.
- I have coverage at work.
Coverage through work is intended to provide low-cost, supplemental insurance. If you leave your employer, or your employer changes benefit providers, you could be left with limited (or no) coverage. By having your own coverage, you can be sure you have the right type and amount of insurance based on your needs.
- My mortgage is insured, I do not need any more coverage.
Mortgage insurance provides valuable protection for your family, insuring that the outstanding mortgage balance can be paid if you pass away. Many people believe their number one financial asset is their house – but for many Canadians their ability to earn money over time is their number one asset. Consider a family with young children, both parents employed full time and each earning $50,000 annually. If either parent passed away unexpectedly, the family would lose $50,000 times the number of years their children are financially dependent. Even with their mortgage paid off, many families would struggle financially without both parents’ on going income. Term insurance can provide money to insure your family can maintain their standard of living if you pass away.
- I am a male smoker; life insurance will be too expensive.
Life insurance premiums are based on gender, age and whether or not you have smoked in the recent past. It is important to keep in mind that if you decide to quit smoking, you can qualify for non-smoker rates – please call us for details.
- I am too young to worry about life insurance.
Life insurance is the basis of a sound financial plan – the earlier you start the better. The best time to buy life insurance is when you are young and healthy.
- The application process is lengthy and I don’t want an agent coming to my house.
Many insurers offer online applications that take less than 10 minutes to complete. Depending on your answers to health and insurability questions and the type of coverage you apply for, you may even be eligible for immediate coverage. No agent will come to your home and there are no medical tests.
- I do not like thinking about death.
Nobody does. If you buy life insurance now, you can rest assured that your family is protected.
Let us protect your family's future and help ensure that their financial needs will be met.