5 Myths About Life Insurance
Nov 30, 2016
Everyone’s heard of life insurance, but this important form of financial protection is widely misunderstood. To improve your knowledge of life insurance’s costs, benefits, and availability, examine the following widespread myths about life insurance.
1. You shouldn’t have life insurance unless you’re employed.
An understandably common myth about life insurance is that it’s not worth having unless you’re employed with a steady income. In reality, nearly every adult should have life insurance. Stay-at-home parents, a large number of which do not have life insurance because they’ve heard and believed this myth, are especially viable candidates for life insurance. As a stay-at-home parent, you provide tremendous value to your family. Many of the financial benefits your family reaps as a result of your work can even be measured in terms of monetary value. Should you die prematurely, life insurance can fill the financial void that will be arise after you’re gone.
2. Single adults without children don’t need life insurance.
Another common life insurance myth is that adults without children don’t need life insurance. If you intend to marry or have parents who are or will soon be financially dependent on you, this myth could hardly be more misleading. Even if you are single, a life insurance death benefit can be used to cover your funeral expenses should you die prematurely.
3. Health issues and old age preclude you from qualifying for life insurance.
The logic behind this is that insurance companies want to insure young, healthy individuals whose likelihood of dying in the years following acquisition of an insurance policy is slim. While the logic may have some merit, it is untrue that the sick and elderly can’t qualify for life insurance. You’ll likely have higher premiums than a young and healthy individual, but you should be able to find a policy you qualify for unless you are terminally ill. Even if you do have trouble finding a life insurance plan that makes financial sense to have, you can consider final expense insurance, which covers burial or cremation and funeral expenses.
4. Group life insurance is enough.
Group life insurance can seem as an attractive employer benefit, and sometimes it is. In general, however, the death benefits on these policies are relatively low. Consumers have little autonomy or flexibility when signing onto a group life insurance policy. If you do opt on to your employer’s group life insurance plan, you may want to supplement it with private life insurance.
5. Life insurance is expensive.
Life insurance can be expensive, but it rarely costs as much as people assume it will before they buy it. A healthy 30-year-old can purchase a 20-year term life insurance plan for less than $20 month. A 50-year-old should expect to pay more for the same coverage, but should still be able to secure it for as little as $75 per month.
Had you heard any of these myths before? What about other information about life insurance that has deterred you from buying it? To further distinguish between fact and fiction and get answers to pressing questions you may have about life insurance, contact Brokers Alliance. Call (800) 290-7226 to speak with an industry expert or get a free a life insurance quote today.