Uncovering the Top 6 Life Insurance Myths
Use these tips to Unbunk the 6 top life insurance myths
Term life insurance is essential in any financial plan and it has many advantages. For most consumers trying to understanding term life and its benefits, means filtering through the common myths surrounding it; and there are many myths about life insurance. These myths and misconceptions can result some people not buying any insurance altogether or not purchasing enough coverage, which always leads to financial hardship for families suffering the loss of a loved one.
To keep this from happening to you, let’s take a look at the most common misconceptions or myths about life insurance to set the record straight–helping you to make the right life insurance choice for you and your family.
Myth #1: I’m a stay-at-home parent and don’t need life insurance.
False! Just because there’s no paycheck to replace, doesn’t mean life insurance is unnecessary. A life insurance policy that provides coverage for a stay-at-home parent isn’t so much about the money they bring in to the household, but instead about the money they keep in the household.
In fact, have you ever considered how much it would cost to pay for childcare and housekeeping in the absence of a stay-at-home parent? Don’t underestimate how much this would require, child care is expensive and is a growing cost.
Myth #2: I’m young so odds are, I won’t need life insurance.
Buying life insurance when you are young is smart financial planning. At some point in your life, you will probably need and want life insurance. You could get married, meet someone special or even have children. This is when life insurance becomes essential to protect your loved ones. Buying it when you are young and healthy makes a policy very affordable.
Some people are gamblers by nature and choose to take their chances by skipping out on life insurance completely. Although it is unlikely you’ll die young, you’re not insuring for what’s likely to happen but instead, your insuring what could happen – dying too young. That’s why term life insurance is inexpensive for young, healthy people. Buying life insurance now means you’ll be providing financial security without spending a lot of money for it in the future.
For example, online quotes show that a $250,000 10-year term policy for:
• a healthy 40-year old woman costs as little as $265 a year
• a healthy 40-year old man costs as little as $319 a year
What’s more you may even be eligible for preferred life rates that mean the annual premiums are even less! Preferred rates are lower premiums – for the same coverage – offered by an insurer based on your health. The good news is that eligibility for preferred rates is common and could save you up to 30 per cent off the standard rate.
Myth #3: If it’s really so cheap there must be a catch.
There’s no catch to term life insurance. Your basic term life insurance policy will offer you coverage so long as you pay your premium. You buy term insurance coverage for the duration of time you’ll need life insurance, whether that’s until the kids are out of school or until your mortgage is paid off. Plus, your premiums are fixed for the length of the term. They won’t increase even if the status of your health changes.
Myth #4: I don’t need life insurance once my children are self-supporting and my mortgage is paid off.
Maybe, maybe not. Everybody’s insurance needs vary. But how would your spouse manage daily living expenses without your help? And what if your spouse outlived you by 10, even 20 years? Even if your children are no longer living at home and you no longer have large debts, like a mortgage, there still are questions you should consider before deciding that life insurance is unneeded.
Myth #5: I have life insurance through my job. I don’t need any more insurance coverage.
False. The truth is your life insurance coverage through your work is only good for as long as you stay with your current employer. You may not be protecting yourself and your loved ones as much as you think.
Review how much your employer-paid insurance provides and calculate whether this is enough to keep your family comfortable through the difficult times if you’re not around. Chances are, your employer does not provide enough coverage. In additiion, when you leave your job for any reason, including retirement, your coverage usually stops.
Myth #6: It’s such a hassle to get life insurance.
Thanks to the Internet, getting quotes is fast and easy. There are a number of online life insurance quote services and usually, all you have to do is answer a few simple questions to get quotes. Sometimes, you can even buy a policy online. We recommend independent agencies like ours, behrinsurance.com We work with over 30 insurance companies to provide you with the best company and unbiased advice.
From the time you marry, buy your first home, start a family and enjoy retirement, having life insurance means you and your family have the security knowing you can reach the long-term financial goals you have set out. Life insurance policies provide you with customized coverage for your family’s needs. Comparing quotes on the Internet can help you find affordable life insurance that will protect you and your family in the years to come. If you would like more information or a free quote for life insurance, click here: Life Insurance Explained or simply call Bill Behr at : 914-633-1717