I often think that my experiences as a child were very unique. Most of my major learning opportunities, even to this day, have come from information that was introduced to me at a very young age. One of the experiences were the healing powers of butter. Yes, you heard correctly – butter. You see, I have nine brothers and I was the smallest and have always been very sarcastic. As with most brothers, there were scuffles that resulted in many different types of bruises, bumps, and burns. Roman candle wars and other pain inducing activities were passed on from brother to brother over the years to which I was the recipient of, many times over. This is where I found butter to be great healing source. For every bump, bruise, or burn, my mother’s solution was to lather butter all over it. In fact, I have a red-headed younger brother whose skin is very susceptible to sunburns that his nickname should’ve been “Butterball” due to the lathering’s he received for his burns!
As I have become older and more learned in the ways of those healing virtues of butter, I have realized that those healing virtues were all a myth. There was no data behind the lathering, rather a belief that it was the right thing to do. In fact, it is the direct opposite with butter. It has been medically proven that butter is one of the worst things for a burn that you can apply. As with many myths, upon further scrutiny, they are found to be incorrect in a lot of ways. Life insurance is not different. Due to the complexities and different types of insurance it is easy to get wrapped up in the mythical features of life insurance.
Here is our top 5 life insurance myths.
Myth #1. The only benefit is the death benefit
Fact: In a term insurance policy the above statement is true. However, in a Wealth Maximization Account there are a number of features and benefits that are available and some of these are at no cost. There can be guaranteed returns, dividend returns, a function of long term care, and many other advantages one can take advantage of.
Myth #2. Life insurance is a horrible place to store your money
Fact: The values of your life insurance policy have two components; a guaranteed component and a non-guaranteed component. The cash in your policy is not reliant upon the ups and downs that the market has in order to grow. It is uncorrelated to the stock market. Thus, providing a stable place to store and accumulate your wealth.
Myth #3. You are single, have no dependents, and therefore need no life insurance coverage
Fact: At a bare minimum, one needs to have their funeral costs, medical debts and other debts taken care of rather than leaving them for a burden for the trustee or the designated person trying to piece together the aftermath of a death.
Myth #4. Whole life is more expensive than the alternatives
Fact: Term insurance, while cheap and affordable in our younger years, becomes increasingly expensive over time. Whole life on the other hand has the power and flexibility where over time, and properly structured, can quickly become a positive asset that can increase your net worth rather than a line item on an expense with no value.
Myth #5. You only need to buy it once and never think about it again
Fact: This is probably one of the most egregious mistakes a policy owner can do. Buy the policy and then never discuss it again. There too many life changes that can happen where the policy needs to be reviewed. Sometimes reviews of the policy can result in premium reductions like in the event of smoking and non smoking. This is especially important to term policy holders due to the increase in premiums that will occur upon the term period expiring.
At Paradigm Life, our wealth strategists have gained the education through our own life experiences and being witness to the success of our clients. These myths are only a portion of how you may be getting the wrong advice. Reach out to us today and we’ll work with you to find a specific plan for your success.
We can customize a policy to fit your financial situation. Our expert Wealth Strategists are available to answer your questions and show you customized illustrations, outlining an individual plan of action to help you achieve your goals. 
, no strings attached.
