Why you need to think about your decision to invest in life insurance

11 February 2020

Why you need to think about your decision to invest in life insurance

The decision to not invest in life insurance is generally based on a few assumptions that most people feel strongly about. The problem is that most of the focus is on why life insurance isn’t necessary, meaning that there is a complete disregard for why it is actually a necessity. Below is a list of some of the most common reasons identified by Momentum Namibia for not investing in life insurance, and why you should seriously rethink these reasons.

 

  1. Most people think it's too expensive
  2. Unfortunately, there isn’t much these days that isn’t considered expensive. The cost of living is always on the rise, so it’s easy to just assume that life insurance is expensive too. The problem is, the cost of life insurance is very much overestimated. If you investigate what it will actually cost you, you will be surprised to learn that certain things like your cellphone contract costs much more. Most people don’t think twice about paying for a cellphone contract, because it is seen as a necessity. So why then is it so easy for people to disregard life insurance, when it is essential for ensuring a sound financial future? In the long-term, you will benefit a lot more from life insurance than you ever will from having a cellphone contract.


  3. Life insurance is seen as something for the elderly
  4. It’s easy to think that life insurance is only necessary when you get older, because after a certain age, the realisation that you can’t live forever starts setting in. At this point it’s necessary to start thinking about what is going to happen to your loved ones when you are no longer around. The problem with this reasoning is that, unfortunately, not everyone makes it to old age. Life happens and no one can know for sure that they are going to pass away from old age.


  5. There is a misconception that being young and healthy means life insurance isn’t necessary
  6. Being young and healthy surely means that you are likely to have a long life? Well, while it is a hope that that will be the case, unfortunately life can be unpredictable and can throw things your way that you never expected, like becoming disabled as a result of a car accident or even an accident at work. Being young and healthy doesn’t prevent such accidents from happening. Life insurance is an investment to make sure that you are always covered in case of these unexpected life events.


  7. Life insurance is a benefit some employers offer, so surely it isn’t necessary to invest in anymore cover?
  8. Many employers offer their employees life insurance as an extra benefit. While this is a great benefit to have, it is often assumed that that is enough. The problem is that these life insurance policies only cover the basics, and most people will only discover the shortfalls if they ever find themselves in a position where they need to claim.

    Often, people think that a benefit like life insurance is offered to everyone in employment, but the reality of the situation is that it isn’t a benefit offered to everyone in every industry.

    Rather make sure that you are covered, and if you are, what you are covered for. Life insurance isn’t just one single product, there are actually a number of different products worth investigating that you probably never even knew existed, like Momentum Myriad’s longevity protector that covers you if you outlive your capital, or retirement booster that pays out a percentage of your premiums when you reach retirement age.


  9. It is assumed that life insurance is only for people with children and dependents
  10. A common misconception is that life insurance is designed to be a financial support for children and dependents if the breadwinner in the household should pass away. If you don’t have children or dependents, then why is life insurance necessary? Well, as previously mentioned, life insurance isn’t just a single product. Life insurance is also there for your own benefit. Life insurance policies will also cover you for critical illness and disability so that you will always be financially secure, even in instances where you can no longer work and earn a living for yourself. This is just one example of the many things that life insurance has to offer.

    Click here for more information on the Momentum Myriad life insurance policies.


  11. In conclusion
  12. Rethinking your decision to not invest in life insurance can offer you a lot more benefits than you might realise. If you take the time to investigate life insurance policies, you will likely realise that the benefits largely outweigh your reasons for not having it.

    Life insurance policies are designed to offer protection to anyone at any age whether you have dependents or not. It forms part of a sound financial plan that ensures financial security for you and your family regardless of what life might throw your way.


  13. Momentum Myriad
  14. Momentum Myriad offers Namibians innovative benefits that are designed to suit every unique need, in the most comprehensive and cost-effective manner. From death and critical illness cover to income protection, impairment or longevity cover to name a few, Myriad offers all the necessities that you might ever need.

    For more information on the benefits that Myriad has for you, contact the Momentum Myriad Contact Centre on +264 61 2973631.