Life insurance is a very important investment which protects your loved ones against financial loss and damage. Most people see it as the ideal safety net which kicks in when you need it the most. However, how many of us are truly familiar with what insurance stands for? Better yet, do we actually understand the concept of insurance? Mistakes and patterns have started to appear: people who don’t need coverage buy expensive policies, well-off seniors buy insurance because they read to do so on the internet. Insurance is meant to protect beneficiaries by offering a death benefit to the living spouse or children of the insured, thus covering expenses which may trouble the family. Here’s a short list of misconceptions people have about insurance:1. The cheaper the policy, the better the insuranceFalse. Indeed, in some cases cheap policies can be very effective and offer the right amount of protection, but what you need to take interest in the most when shopping for insurance is the coverage. The coverage practically sets the price, not the other way around. If you go for a cheap policy which doesn’t offer enough protection, in the end your life insurance can prove to be futile, as your loved ones will still undergo financial difficulty.2. Everyone needs life insurance!No, not really. If it were for the insurance companies, every single living being on Earth would be insured. Children, however and some seniors have no reasons to buy life insurance. It all comes down to whether you need the money or not. If your family will be able to live prosper without your contribution and cover your final expenses without too much financial effort, you might simply not need insurance.3. “I don’t have to buy life insurance now!”By contrast with the previously explained aspects of insurance shopping, some people postpone buying insurance for a long, long time. If you are, for example, the sole breadwinner of your family or if you are in debt and have children, there’s no doubt about it: you need life insurance! And the more you delay purchasing an annuity, the higher will the price be. Insurance rates are calculated based on factors such as age and health condition. Thus, naturally, the younger you are when you buy a policy, the smaller will the premiums be. Postponing will only make you pay more.In addition, don’t forget to read all the insurance paperwork thoroughly before you sign it and always have trustworthy professional assistance by your side. By this means you’ll be protected against insurance fraud.