Busting (7) Life Insurance Myths

This myth stems from a reputation that insurance companies often don’t pay claims. The media tends to highlight negative stories, leading to a biased view of insurance companies. In reality, claims disputes typically arise from non-disclosure - where full information isn’t shared with the insurer - or misunderstanding policy definitions. Understanding your cover and being transparent during the application process can ensure a smoother claims experience.

The truth is, age is just a number when it comes to life insurance. While many young people think they can wait until they’re older to consider cover, life is unpredictable; accidents and health issues can happen at any age. Delaying cover can also mean health issues complicate the application process later. Insurance companies assess the risk based on your health at the time of application. If you develop a medical condition, it could impact your eligibility or result in higher premiums

Even if you’re single, life insurance can be important to protect your loved ones as debts get passed onto your family if you die. Life Insurance can cover any debts, such as your credit card, your mortgage, and cover the cost of your funeral, ensuring that these financial obligations don’t fall to your family or loved ones if you pass away.

While health can influence your life insurance options, many insurers, including Pinnacle Life, offer cover for individuals with pre-existing conditions. Depending on the severity of your health issues, you might still qualify for affordable life insurance. It’s always worth exploring your options rather than assuming you won't qualify.

While having children certainly increases the need for life insurance, it’s not the only time to consider it. Major life events - like buying a home, moving in with a partner, getting a mortgage, or supporting ageing parents - are also crucial moments to secure cover.

While life insurance can be a bit of a “set and forget” solution, it’s essential to keep it updated. Life changes, such as marriage, divorce, having children, or taking out a mortgage, may make you eligible for an increase in cover. It’s also important to keep your details current as it ensures a smoother claims process.

Many families prioritise insuring the higher-income earner, but it’s essential to consider the financial impact of losing a primary caregiver. If one partner works reduced hours or stays home, their absence can significantly affect the family. If the main income earner wants or needs time off work to care for a critically sick partner or look after children if the caregiver dies, life insurance can be a financial saviour.

Don’t let myths prevent you from securing the protection you need. If you have questions or want to explore your life insurance options, contact us today or visit our website to get started.