Do I need to buy life insurance? After reading these 12 correct understandings of life insurance, you will have the answer in your mind~

Myth 9: I have a pre-existing medical condition and cannot be insured

Most insurance companies will not deny coverage based on a pre-existing condition, but your premium may increase. Some insurance companies have more lenient coverage standards for certain medical histories.

Myth 10: Other investment tools offer higher returns

Although other investment tools offer higher returns, the overall functionality of permanent insurance cannot be ignored. Whole life insurance has a stable return and may pay dividends. The accumulated cash value can also be used to pay premiums or withdraw.

Myth 11: Permanent life insurance is only for the rich

While term insurance is a good option for most people, permanent life insurance may fit into your financial plan if your budget allows. For example, if you have dependents who require long-term care, you can set up a trust.

Myth 12: My life insurance only needs to be twice my annual salary

In addition to medical and funeral expenses, dependents may also need insurance money to pay for mortgages or education expenses. Experts recommend insurance amounts of 6 to 10 times your annual salary to ensure your dependents’ financial needs.