Myth #9: You can’t acquire insurance if you’re “too old.”
While receiving life insurance coverage as a senior is more complex, it is not impossible, especially if you have health problems. There are several life insurance coverage alternatives for seniors, whether you wish to leave a lump sum for your family or cover final expenses. However, it is critical to confirm that you require life insurance. You may not need coverage if you have no debt and have savings or finances for final expenses.
And if you do need coverage, a term life insurance policy may be a good option if you are in good health for your age and willing to take a medical exam, because it can be used to cover debts, such as a mortgage, or provide financial support for a spouse or dependent if you die during the policy term.
Myth #10: Life insurance is a waste of money.
The answer is dependent on how you define “investment.”
If we define investment as purchasing something that will grow in value over time and provide income to your successors, then life insurance is not a good investment.
However, life insurance can be an outstanding investment vehicle if you look at it from a different angle, such as purchasing assets with cash flow or liquidity.
Insurance firms have excess earnings after covering their estimated operating costs and claims, they pay dividends to whole life insurance policyholders. This is not an investment but an additional way for whole life insurance policies to pay off.
Whole life insurance features a tax-deductible cash value component.
This cash value is a key component of the insurance since it can be used to pay for a house, college, business expansion, or to supplement your retirement income – and it is tax-free if you do not remove more than you put in.
