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Busting myths about Life, Critical Illness and Disability Insurance

Having been in the insurance industry for years, I’ve heard more than my share of myths and misconceptions: I don’t need disability insurance, I get it through my work; life insurance is for old people; a life insurance salesman shot JFK.

Okay, that last one I made up. But, the truth is, facts about life insurance often get misconstrued. And worse, sometimes people let these misunderstandings or erroneous beliefs keep them from making important life decisions.

ADI Benefits is known for cutting through the nonsense, so here are some common misconceptions dispelled.

Common misconceptions about life insurance

Getting life insurance takes too long. I’ve had clients apply and be approved within two days. While some cases can take longer, typically it takes about a week and a half for a policy to be issued.

Life insurance is too expensive. We’ll find coverage for any budget. It’s whatever you can afford, be that $15 or $150 a month. And not only do you set the price, you set the term.

Misunderstanding critical illness coverage

Critical illness insurance and life insurance are essentially the same thing, right? Wrong! In fact, they are pretty much the opposite. If you make a claim with critical illness insurance you are the beneficiary and – this is the biggie – you are not dead!

Like life insurance, critical illness insurance pays a lump-sum benefit, but that’s where the similarity ends. Critical illness insurance helps you and your family deal with the many associated costs of living through a life-threatening illness. Remember this: 75% of Canadians survive a critical illness; 0% of Canadians survive death. Critical illness is about the surviving.

Disability insurance delusion

Disability insurance rarely pays out. Another fallacy – if it happened often you’d hear about it. Millions of dollars are paid out by companies annually, and I’ve only seen one case be declined in my seven years in the business. The reason it doesn’t happen very often is because the disability insurance application is very thorough; it is longer and more involved than that for life insurance. If an approved disability policy is not paid out, it is usually because there has been some form of falsification of information.

At ADI Benefits, we pride ourselves on giving our customers the straight goods. Let us help you sort the facts from the fiction and make the choices that work best for you. Contact us today!