Around 267 million people in the US have insurance policies, making it one of the largest industries in the country. However, people often consider life insurance to be confusing and tricky due to all the rules and technicalities. You may be wondering do I even need it and how much coverage should I get?
Whether or not you decide you need life insurance, we are here to clear up some common misconceptions regarding it. Let’s begin.
Common Life Insurance Myths
The following are the most common life insurance myths that you need to be aware of.
Myth 1: Having life insurance through my employer is enough.
Life insurance policies through your employer come with great insurance benefits. However, this insurance isn’t valid if you leave your job. Moreover, most of these insurance policies include a flat payment amount, usually equal to a year’s pay. Therefore, this wouldn’t be enough for a spouse or your kids to live off of long-term.
We understand that your employer may have some other alternative options or add-ons available, like turning your work policy into a permanent one or buying multiple ones. However, none of these options benefit the policy bearer in the long run. Therefore, it’s best to get a separate life insurance policy so it will follow you no matter where you work.
Myth 2: Life insurance costs too much.
One of the main reasons some people forgo life insurance is because they think it’s too expensive. However, that’s not true. There are different types of life insurance policies that you can choose from. Such as, you can design a policy specific to your needs and budget.
Moreover, if you purchase a policy while you’re young then it’ll be cheaper in the long run. The older you get, the higher your premiums will be. So, if you’re worried about the cost, it’s best to purchase a policy while you’re young and you’ll end up saving thousands of dollars in premiums.
Myth 3: I can’t get coverage if I’m not healthy.
Life insurance companies provide coverage to those with a wide range of medical conditions. We understand that getting life insurance when you’re sick or have a medical condition may cost more; however, it does benefit you in the long run.
Therefore, everyone should be upfront regarding their health conditions with their insurance providers. These insurance companies have medical underwriters who have extensive knowledge of various medical conditions. Therefore, you’ll be working with someone who understands your condition and has your best interest at heart.
Myth 4: I don’t need coverage since I don’t have kids.
Life insurance policies aren’t only necessary if you have kids or a spouse. Instead, it could be used to pay off debt or your funeral arrangements. For instance, it could go towards any debt you have like your taxes, medical bills, mortgage, car payment, and much more. Therefore, these insurance policies are equally important for you even if you don’t have any dependents.
The money could also go to a charity or cause of your choosing. Another option is leaving the money to a sibling, niece, or nephew. The possibilities are endless and your legacy will be remembered!
Understandably, there are several myths regarding life insurance due to its complexity. However, these insurance policies are very convenient and can help protect you financially. We suggest you consult a life insurance professional and find out more about these coverage plans today!