Today, kanetix released the details they’ve compiled on the top six life insurance myths in Canada. Term life insurance has many advantages. But understanding term life insurance and its benefits means sifting through the myths surrounding it. So kanetix took a look at the most common misconceptions about life insurance to set the record straight, helping consumers make the right choice for themselves and their family.
So what are the most common myths about life insurance in Canada today?
Myth #1: Some people believe if they don't work outside the home they don't need life insurance.
False! Just because there's no paycheque to replace, doesn't mean life insurance is unnecessary. In fact, how much it would cost to pay for childcare and housekeeping in the absence of a stay-at-home parent needs to be considered. It's a lot of money and reason enough to have life insurance.
Myth #2: Young people know the odds are in their favour and they won't need life insurance.
Some people are gamblers by nature and choose to take their chances by skipping out on life insurance completely. Although it is unlikely someone will die during their working years, you're not insuring for what's likely to happen but instead, for the worst-case scenario. That's why term life insurance is inexpensive for young, healthy people.
For example, in July 2006, an online quote for a $250,000 10-year term policy for:
• a healthy 35-year old woman costs as little as $173 a year.
• a healthy 35-year old man costs as little as $215 a year.
• a healthy 35-year old married couple costs as little as $268 a year.
What's more you may even be eligible for 'preferred' rates that mean the annual premiums are even less!
Myth #3: If term life insurance is really so cheap there must be a catch.
There's no catch. A basic term life insurance policy will offer coverage so long as the premium is paid. Term insurance is purchased for the duration of time a person will need life insurance, whether that's until the kids are out of school or until the mortgage is paid off. Plus, premiums are fixed for the length of the term. They won't increase even if the status of the insured’s health changes during the term.
Myth #4: Life insurance is no longer needed once the children are self-supporting and the mortgage is paid off.
Everybody's insurance needs vary. But consider how a spouse would manage daily living expenses without the other spouse’s help? And what if the spouse outlived the deceased spouse by 10, even 20 years?
Myth #5: Many jobs offer life insurance through their benefits package so additional coverage is not needed.
False. The truth is the life insurance coverage through an employee’s work may not offer as much protection as the employee thinks. Review how much your employer-paid insurance provides and calculate whether this is enough to support the family. What's more, when an employee leaves the job for any reason, including retirement, coverage normally stops.
Myth #6: It's such a hassle to get life insurance.
Thanks to the Internet, getting quotes is fast, free and easy. Online quotes for term life insurance are available online at kanetix.ca/term-life-insurance from some of Canada's most respected and known insurance companies.
Launched in October 1999, kanetix is Canada's leading national, online insurance marketplace. The kanetix insurance information and shopping service brings consumers and insurance companies together in a one-stop shopping environment. Each day, thousands of consumers visit the kanetix website to compare insurance quotes from a variety of Canadian insurance companies. kanetix visitors can select the insurance quote of their choice and where available, choose to complete the application for coverage online or purchase their policy over the phone.
In addition to the insurance marketplace, kanetix is a leading provider of online insurance quotation technology and develops online quotation systems and websites for some of Canada's leading insurance providers.