Cracking open the biggest life insurance myths

Cracking open the biggest life insurance myths

I receive questions daily from consumers who are trying to understand their insurance policies. And for more than a decade of answering questions about auto, home, health and life insurance, the two top questions center on life insurance: How do I find the lost policy of a deceased relative, and how do I determine if someone has taken out a "secret" life insurance policy on me?

These common questions reveal life insurance myths that will continue to endure - often due to misinformation online.

One myth is that "someone" maintains a huge database of all life insurance policies sold. Unfortunately, the truth is that it's really every man for himself - life insurance companies each maintain their own policyholder records and don't go around sharing them.

The other big myth is likely born from paranoia - and possibly "true crime" TV shows: that someone you barely know, someone you hate or someone who's plotting against you can buy a life insurance policy on you without your knowledge.

Now's a good time to take a step back and crack open the biggest life insurance myths...

http://www.huffingtonpost.com/amy-danise/cracking-open-the-biggest_b_777377.html

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Follow the link to read the myth busters, some gems in there debunked. The first one about people looking for a long lost policy from a long lost uncle you haven’t seen in decades always tickles me when I hear it, this is not Hollywood, it’s real life, you will not inherit Brewster’s Millions, time to move on!

At the same time there are myths that I really don’t get why they continue to persist, like Myth three: Life insurance companies look for ways to actively reject people. Life Insurers don’t have a limited pot of money that they’re mistrustful of placing on people’s lives, in theory yes, but everyone not’s just going to drop dead tomorrow, then they really would be up the Khyber! The more people paying in, the more profit they generate for shareholders, I can remember the percentage of claims of the top of my head but only a minority end up claiming an insurance policy in the end.

I could go on all day about the myths and I’m sure you don’t want me to, so just follow the link to read the rest.