To help break up some of the confusion about life insurance, we have put together a list of 8 myths to debunk and separate facts from fiction.
- Myth: It is really expensive.
According to the 2015 Insurance Barometer study conducted by Life Happens, 80% of consumers misjudge the cost of term life insurance. Respondents gave a median estimate of $400. Millennials put it at $600. The actual price is about $160 annually, which averages to about $13 a month.
- Myth: If you are a stay-at-home parent you don’t need it.
If you’re a stay-at-home parent, life insurance is still important. You may not bring in an actual paycheck for the household, however you likely provide services that could cost tens of thousands of dollars to replace each year. These may include child care, daily transportation, home maintenance and cooking, to name a few. If you were to pass away, life insurance may help cover some of these costs.
- Myth: Only the breadwinner needs coverage.
Even if you don’t have the biggest paycheck in your household, your family still relies on your income for day-to-day operations. Unless your family would have that extra income to spare, you need coverage on both spouses.
- Myth: If you are single, you don’t need it.
Life insurance may help your loved ones pay off your debts if you pass away. Planning early not only helps protect your loved ones from burdensome expenses, even more it gets you started on a financial plan for the future.
- Myth: Your employer-provided life insurance is all you need.
This is a great employer benefit, but typically the payout is fairly low, perhaps one or two times your base salary. That may not be enough to provide for a young family. Plus, what if you lose or leave your job? A workplace policy doesn’t travel with you in most cases. A personal policy is the safest way to ensure your family is taken care of.
- Myth: My health or age disqualifies me.
There are many companies that cover a range of health conditions and ages. Serious medical issues and higher ages might mean higher premiums, but most importantly coverage could still be within reach.
- Myth: I need to lose weight before I apply.
Weight is always fluctuating. How much you weigh will not factor into your rate as much as your age or a medical issue that might pop up.
- Myth: If you are young and healthy, you don’t need it.
Your life insurance needs depend on many factors, but if possible, it’s better to buy a policy when you’re young and healthy. You get a lower rate the younger you are, and you will be better prepared for the future. It is no doubt that life insurance can be confusing and intimidating to talk about. Who really wants to think about what will happen when they pass away? In the long run however, it is the best thing you can do for the people you love. Here is a video from Life Happens sharing a story about how important Life Insurance can be.
Want more information on life insurance? Go to this page to find out more and to get a quote!