There are several common myths about life insurance, which can cause lots of confusion. This article discusses 6 of these myths while providing accurate information regarding each one.
1.Life Insurance Is Costly
A study conducted in 2017 by LIMRA found that most people assumed life insurance policies cost more than three times the actual cost. Life insurance costs differ from person to person, and they are determined by various factors, including the term of the policy, the age and health of the policyholder, and the extent of coverage. Fortunately, they can be customized to fit different budgets.
Some policies cost as little as $135 annually or $12 per month. For many people, the cost of coverage is worth it for the peace of mind in knowing that their family will not be left to carry the financial burden all alone if something were to happen to them. If you are an average or low-income earner, it is best to purchase a policy sooner than later to help secure a lower rate.
2.Life Insurance Through My Employer Is Enough
A company-provided life insurance policy is always a good way to start your coverage journey, but relying on just this one policy has its risks. In case of a job loss, you will also lose your coverage. Scrambling to get coverage later may mean you may have to pay significantly more to take out a personal policy than you would if you purchased one now.
Also, employment-based life insurance may not offer the extent of the coverage you need, and you may be overpaying for it. Securing an individual plan can cost significantly less than the company-provided coverage. With a separate policy, you can customize it to suit your specific needs. You may not have the liberty to do so if your employer is in charge.
3.I am Too Young/Too Old for Life Insurance
There is no such thing as being too young or too old to take out a life insurance policy. Securing one at a young age could mean getting the lowest rate possible. No matter what age you are, there will always be a life insurance policy option that can fit your needs and circumstances.
4.Only Those Who Are Employed (Breadwinners) Need Life Insurance
There is no doubt that the person acting as the breadwinner of the family is the most important person to have this coverage. However, if the breadwinner dies, you may have to compensate for the loss financially. You should consider taking out coverage for all individuals to help provide coverage, no matter what happens.
5.Having Health Issues Will Disqualify Me from Getting a Policy
Although health issues may impact the type of life insurance term you are eligible for, there is a plan for everyone, no matter the health problems you have. Guaranteed or whole life insurance does not require answering health questions or taking a medical exam before you can purchase one.
6.I Don’t Have Kids, So I Don’t Need Life Insurance
Life insurance is not only for couples or parents. You can also purchase a policy if you are single. For a single person, your death may cause a financial burden for your dependent siblings. For a couple without children, the other spouse may inherit your debts like student loans. To ensure that your death does not cause any financial hardships for your family, it is best to take out this policy.
These are some of the common life insurance myths that you need to be aware of. At Randy Jones Insurance, we offer life insurance policies to suit your specific needs and budget. Visit our site to get a quote now!