Life insurance

Life insurance is not a simple product. Even term life policies have many elements that must be considered carefully in order to arrive at the proper type and amount of coverage. But the technical aspects of life insurance are far less difficult for most people to deal with than trying to get a handle on how much coverage they need and why. This article will briefly examine the top 10 misconceptions surrounding life insurance and the realities that they distort. 1: I'm Single and Don't Have Dependents, so I Don't Need Coverage Even single persons need at least enough life insurance to cover the costs of personal debts, medical and funeral bills. If you are uninsured, you may leave a legacy of unpaid expenses for your family or executor to deal with. 2: My Life Insurance Coverage Needs Only Be Twice My Annual Salary The amount of life insurance each person needs depends on each person's specific situation.In addition to medical and funeral bills, you may need to pay off debts such as your mortgage and provide for your family for several years.analysis is usually necessary in order to determine the true amount of insurance that must be purchased - the days of computing life coverage based only on one's income-earning ability are long gone. 3: My Term Life Insurance Coverage at Work Is Sufficient Maybe, maybe not. For a single person of modest means, employer-paid or provided term coverage may actually be enough. But if you have a spouse or other dependents.then additional coverage may be necessary if the term policy does not meet the needs of the policyholder. 4: The Cost of My Premiums Will Be Deductible Afraid not, at least in most cases. The cost of personal life insurance is never deductible unless the policyholder is