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People who opt for life insurance are often bothered by the myths associated with it. After all if you want a proper coverage you need to be careful on what you choose and clear all your doubts regarding the same. One of the myths that rule topmost amongst others is that should single people opt for life insurance? The answer is yes. You may be single and having personal debts or even your funeral expenses that need to be met and covered. If you do not have any dependents who will tackle such situations after your life, then a life insurance coverage is mandatory for you. Also you can use the premium to donate it to a charity after your death. Another myth about life insurance coverage policies is that should a life insurance coverage policy premium amount be double of what one earns throughout the year? The answer to this is No. There is no specific rule that states that you need to submit premiums to your life insurance agency that is double of what you earn throughout the year. You must determine your premium amount based on the amount of cash that flows into your bank account. The premium amount should be one with which you are comfortable with. Many believe that term life insurance policies done by offices or workplaces are sufficient as coverage. This is not quite true as there is no guarantee that your term based life insurance policy initiated by your employer will be enough as life insurance coverage for yourself and your family. The term insurance premiums paid by the office can only be sufficient for a single person but will not be enough for a person with many dependents. People with multiple dependents having a term insurance policy provided by their employers are advised to take up additional life insurance policies- like permanent life insurance coverage policies to meet the needs and requirements of their dependent family members. Remember that the price of premiums paid for a life insurance policy is never deductible. The premiums are deductible only Under Schedule C of Form 1040 for people who are self employed as are using the premiums as a protection of their business related assets. Though it is advisable to take up a life insurance policy to insure your life and help your dependent family members, you need not opt for life insurance if you have already done a medical insurance for yourself and are paying its premiums. Also if you have all your future finances sorted out in and after life, then it is not essential to take up a life insurance policy and stress out yourself over the payment of premiums. There is also a myth that reigns supreme in the minds of the policy holder that involves the fact that policy holders believe that a term deposit is much cheaper and better option to opt for while doing life insurance coverage. However this is not true. Remember that though expensive, a long term life insurance policy will always give you greater benefits in the long run in comparison to term based policies. Sometimes it is cheaper to buy insurance from an life insurance broker, that have many contacts and able to negotiate a good rate.
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