Last Updated on December 4, 2018
Myth N° 2: I Can Always Renew The Policy If I Find Out That The Term Life Insurance Policy That I Have Is Not Enough And Needs Extra Protection When The Term Ends.
There are basically two types of life insurance: The permanent life insurance and the term life insurance and which is the most common type among young families and that’s of course for a good reason!
In fact, term life insurance offers the best coverage for very low costs. However, it only provides coverage for a limited period of time that’s why it is called ‘’term insurance’’.
Still, it is a perfect choice for those who need to cover temproray financial needs that will only last for a particular period of time and then disappear. A good example would be mortgage or child education!
However, some families still feel the need for insurance even when the mortgage is paid off and children have grown up ! In this case, most of them would decide to renew their policy believing that this would help them cover their needs.
But guess what? This is a big mistake because renewing a policy when the term is over can be quite expensive and can cost you quite a lot!