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5 Myths About Whole Life Insurance Debunked

5 Myths About Whole Life Insurance Debunked

The older we get, the more we want to make sure that we’re financially set for later in life. I have car insurance and renter’s insurance, but I’ve recently delved more into insurance options and learned all about whole life insurance, which I didn’t even plan to look at! Whole life insurance is a permanent life insurance policy that remains in play for the entire duration of the insured’s lifetime. Once the insured has passed, the policy is guarantees that the insurer will pay death benefits to the policy’s beneficiaries.[1] Turns out, there are so many myths and misinformation out there and they are so well-known that I was buying into them without even realizing it, and I was not getting the whole story.

I did some digging and found some of the most common myths people perpetuate when talking about whole life insurance. Prepare to be debunked!

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Myth 1: It’s really only death insurance.

While whole life insurance does pay out to cover burial costs, which can be very expensive, it can also replace the income of the deceased person, meaning that the money paid out in the estate can actually cover missed wages and potential earnings. This can make the grieving process a tiny bit easier because the mourners aren’t worrying about how to pay the mortgage. It can also ensure that a working mother who died unexpectedly left money to cover her kids’ care.

Myth 2: Whole life insurance isn’t an asset.

It’s not just an insurance policy that you can never touch, it is an asset, similar to a place to store liquid cash. Once your policy gets some cash value built up, its annual rate of return is higher than most savings accounts and money market accounts! You can both withdraw money from the policy like a checking account withdrawal, and you can also borrow against it and leave the liquid cash in place.

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Myth 3: You can’t borrow against whole life insurance.

You can borrow against it at a significantly lower rate than bank loans and you get a higher return. You also retain your cash value in the policy, because you are not removing liquid cash from the account, but borrowing against it. You can use that money for any reason and are not penalized like you be if you removed money from a 401(k) before being 59 and a half.

Myth 4: You don’t need it if you’re single or have no kids.

Actually, the sooner you start building up your cash value, the better. You may not have beneficiaries now, but you might in the future, and if you started putting $100 per month in your whole life insurance policy 10 years before you had kids, you will already have nearly $12,000 in cash value built up. That money isn’t just for when you die, but can enable you buy a home sooner, borrowing at a lower rate than banks, or allow you to take time off to be with the kid you just had, or other opportunities for you to enjoy your life.

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Myth 5: It’s unnecessary and too expensive!

According to recently published Busting the Life Insurance Lies, “One dollar paid into your whole life policy can actually perform seven jobs at once: pay the premium, build up cash value, create a waiver of premium rider, install the initial death benefit, provide the ability to leverage cash value through loans, increase the death benefit, and enable Paid-Up Additions.”

This money is cash value dollars, which allows you to access and use the money as needed with no penalties for early removal, like a 401(k), you get a much lower interest rate and can borrow against it, and you get a higher interest rate on cash than in savings or money market accounts, and it also continues to gain value to pay out your potential earnings and burial costs after death.

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There are a lot of myths to be busted and lies floating around about insurance. Keep doing research, make sure to speak to expert advisors, and ask questions. Whole life insurance is specifically made to help you throughout your whole life!

Reference

[1]https://www.metlife.com/individual/insurance/life-insurance/whole-life-insurance.html

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Last Updated on October 15, 2018

Why Am I So Tired? 10 Reasons You’re Extremely Tired And How to Fix It

Why Am I So Tired? 10 Reasons You’re Extremely Tired And How to Fix It

“Why am I so tired?” is a question that people ask themselves pretty frequently. Everyone gets tired at one point or another, particularly after something like an illness, a long night up with a sick child, or a busy week at work. When tiredness is persistent, however — when you feel tired as soon as you wake up in morning or when sleep doesn’t seem to help, no matter how much rest you get— it may often indicate a deeper, underlying problem.

While there are a lot of possible reasons for tiredness, here’re some of the most common causes of fatigue:

1. Dehydration

If you want to boost your energy levels, first check whether you are dehydrated. The human brain is 85% water, and needs to maintain this level in order to perform its essential functions.

If you fail to drink enough water, the brain extracts fluids from your blood to compensate for the deficit. As a result, the oxygen levels in your blood drop, reducing the amount of energising oxygen available to your organs and tissues. Fatigue and sleepiness set in rapidly, leaving you more vulnerable to the 2 pm post-lunch crash that many of us experience.

You cannot cure this crash with caffeine – the only long-term, effective solution is to drink hydrating fluids throughout the day.

2. Lack Of Exercise

A workout will surely leave you feeling even more tired, right? Wrong! As counterintuitive as it may sound, physical activities have an energizing effect. Moving your body releases endorphins, increases your heart rate, and boosts your concentration.

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Try to fit in at least 30 minutes of medium-intensity exercise every day. It’s easiest if you can make this part of our everyday routine, either as soon as you wake up or right after work.

3. A Poor Diet

The food you eat has a direct impact on sleep quality and the amount of rest you get every night. For maximum energy, stick to protein, slow-release carbohydrates, and a moderate amount of healthy (unsaturated) fats. The majority of your food should be plant-based, high in fiber, and low in sugar. These choices will prevent blood sugar fluctuations, which can leave you feeling exhausted.

An easy way to make sure you stick to a good diet is through meal preparation. It’s easy to just get take-out when you’re tired after work, but if you have a meal ready for you in the fridge, you’ll be less tempted by pizza or cheese.

Find out more about healthy meal prep here: 10 Meal Planning Apps You Need To Have To Get Healthier Easily

4. Skipping Breakfast

Physician Dr. Nerina Ramlakhan advises that eating breakfast is key to maintaining a good level of energy throughout the day. When you eat breakfast, you are sending calming signals to the areas of the brain responsible for avoiding danger, along with those that instruct the body to conserve as much energy as possible.

Ingesting food signals to your brain that there is enough food available to ensure our survival. This encourages it to stay relaxed, which in turn, promotes restful sleep.

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Some great ideas for a healthy, filling, and make-ahead breakfasts include overnight oats, smoothies, and freezer-friendly breakfast burritos.

Or if meal-prepping isn’t your think, stock up on easy but healthy breakfast foods like multigrain cereal, yogurt, and fruit: 20 Healthy Breakfast Choices That Will Save You Time

5. Poor Quality Of Sleep

We all know that it’s important to wind down a couple of hours before bed. But did you know that it’s what you do throughout the day that promotes good-quality sleep? It’s not just about the number of hours you sleep, but how restful and deep that sleep is.

TO feel rested, try to regulate your everyday routine to make your sleep deeper and better. Get up at a regular time in the morning to ensure that you get regular sunlight.

Eat nutritious foods in moderate amounts, and make sure you stay hydrated. Go to bed at the same time. And before bedtime, avoid screens that can give off harmful blue light and also keep you stimulated when you need to prepare for a restful night.

Read more about how to develop a routine that will get you better sleep: Poor Sleep Quality Comes from All the Things You Do Since Morning

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6. Sleep Apnea (A Person’s Airways Get Blocked off While They Are Asleep)

Sleep apnea is a common sleep disorder where a person’s airways get blocked off while they are asleep, causing their oxygen levels to drop while they are asleep. This often causes people to stop breathing at night and then to jerk themselves awake (this can happen over 30 times an hour).

Because of this, people with sleep apnea can feel short of breath and have low energy levels. Mouthpieces and other devices to aid in breathing as well as the use of a special breathing machine to keep oxygen levels in a safe zone.

If you feel tired all the time and think you might have sleep apnea, consulting with a doctor is important. Do a sleep study, as this can often reveal if there is an underlying problem causing your tiredness — and once a diagnosis is made, treatment to help you get your energy back begins.

7. Depression

Depression is the most common mental health disorder in the United States (and in many other countries of the world as well). It is marked by persistent feelings of sadness or unhappiness but has physical symptoms, too. Apart from fatigue, people may also experience changes in sleeping and eating habits and difficulty concentrating.

Treatment can often center on anti-depressants, counselling and lifestyle changes like stress management to help manage this condition. You can take a look at these 15 Ways To Overcome Depression And Sadness.

Many people also benefit from activities like yoga and meditation, which help regulate both the body and mind.

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8. Hypothyroidism

If a person has hypothyroidism, their thyroid gland does not produce adequate levels of these important hormones— and the result can be a persistent and unrelenting fatigue, even if someone is getting enough sleep. Other common symptoms of this disorder include mood swings, weight gain and feeling cold all the time.

Fortunately, simple blood work can reveal if there is a problem and it can be treated with artificial thyroid hormone pills like Synthroid. Check here for signs of having a thyroid problem. If you suspect that you might have hypothyroidism, talk to your doctor.

9. Anemia

People with anemia are not able to make enough red blood cells to transport oxygen throughout the their bodies. This is often due to a lack of nutrients like iron or B-12 and can be caused by problems such as heavy periods, bleeding in the digestive tract or pregnancy (due to the increased demands of the growing baby).

However, in most cases, this can be resolved with treatments like changes in diet, iron supplements or B-12 shots.

While here are some drinks you can try to relieve symptoms of Anemia, it’s best to do a blood test and consult your doctor in case of any hidden medical conditions.

10. Cancer

While you shouldn’t be freaking out about cancer just because you are tired, it is a fact that fatigue is one of the symptoms of cancer. Other common symptoms can include unexplained weight loss and the presence of palpable lumps or growths. This disease is marked by the abnormal and uncontrolled growth of cells that can do damage to surround tissues and possibly spread to other parts of the body.

Diagnosis is usually by biopsy and treatment often focusses on radiation, chemotherapy or surgery— and generally when a diagnosis is made early, the outcomes for the patient are better.

Featured photo credit: Lily Banse via unsplash.com

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