there are some myth of thought that may dissuade you at the point you want to take life insurance policy. the faster you debunk such myth the better you stand to pick up life insurance policy which shall stand to relieve your dependencies from financial hiccups at your death. This post shall explain further on the Life Insurance Myth debunked.
MYTH 5: MY BENEFICIARIES WILL HAVE TO PAY INCOME TAXES ON THE PROCEEDS FROM MY LIFE INSURANCE POLICY.
Some persons are usually discouraged from taking life insurance policy on the ground that there always have the belief that their beneficiaries shall be using the benefits of the life insurance policy to pay for taxes of such benefit. but it will le imperative to note here that proceeds from life insurance policy are usually tax-free. That means if you pass away, your beneficiaries would not be taxed on the benefit paid out from your policy. However, any interest payments on top of the policy amount may be taxed.
READ ALSO: 4 Life Insurance Myths Debunked/ You can’t Miss this
MYTH 6: IF I GET TERM LIFE INSURANCE, I CAN’T CONVERT IT TO A PERMANENT OR WHOLE LIFE INSURANCE POLICY.
You may also be having the thought that Life insurance policy cannot be converted to a different insurance policy. Generally, converting a life insurance policy depends on the life insurance policy you have took. however, it will be important to speak up with your insurance agent to determine whether the life insurance you have is convertible. You also may encounter additional requirements with a convertible term policy, such as increasing premiums.
MYTH 7: I DON’T NEED LIFE INSURANCE ONCE MY CHILDREN ARE ADULTS.
The need for life insurance policy can not be overstated as its benefits such like the inheritance you left for your children, may always be applied into use by your children and family. while, if it is permanent Life insurance, you may even make partial withdrawal from it. Life insurance policy has a number of advantages, such as helping to relieve the burden of paying for final costs, paying for state estate taxes your heirs may face, paying off debt you may have left behind, or simply leaving your children with an inheritance.
READ ALSO: Types of Life Insurance Policies You May Need
MYTH 8: I HAVE A COMFORTABLE AMOUNT OF SAVINGS, SO I DON’T NEED LIFE INSURANCE.
As it be correct to state that you maintain constant saving during your time in service, but it may also be pivotal that you take life insurance policy as you use up your savings after your retirement but the benefits of your life insurance policy may be use by your heirs and loved one to pay for your funeral or debts when you have passed away.
Another thing to keep in mind is your mortgage. If you don’t have enough in savings and your mortgage has not been paid off, your loved ones also may not be able to hold onto your home. A life insurance policy’s death benefit can help alleviate some of this burden after you pass away. Life Insurance Myth Debunked
In conclusion, we shall use this medium to encourage you to go for life insurance policy as there will be nothing most helpful than leaving your family with a helping hand when you have deceased.
Share this post with your family and friends and subscribe to this site for your latest updates on scholarship.
