Life insurance is an important part of a well-rounded financial plan. But let's face it — it can also be confusing. In fact , misunderstandings about life insurance cause many people to skip the coverage altogether , putting their families at great risk for financial hardship. Here , we set the record straight on seven common myths about life insurance.
Myth 1: Single and young people don't need life insurance.
Truth: Your key question should be: Will anyone be worse off financially if I die? Even if you have no dependents , you might leave behind credit card debt , student loans , a car payment or funeral expenses.
A small life insurance policy would cover these costs. Moreover , buying while you're young can help you lock in lower rates and guarantee coverage if you develop health problems later in life.
Myth 2: Only people with kids need life insurance.
Truth: Chances are your spouse depends on your income , regardless of whether you have children. Could he or she manage to pay the mortgage and all other household bills and debts alone? A life insurance policy could help your partner keep the house and maintain the same standard of living.
Myth 3: If your employer provides coverage , there's no need for more.
Truth: Many corporations provide their employees with free life insurance worth once or twice their annual salary. Similarly , the military's Servicemembers Group Life Insurance (SGLI) offers great rates on policies up to $400 ,000. These are nice benefits , but if you leave your company or the military without a separate policy in place , it may be difficult or even too late to purchase one when you need it most.
Myth 4: Life insurance is too expensive.
Truth: It probably costs less than you think. For example , a healthy 30-year-old male can get $250 ,000 of 20-year term coverage for less than $15 per month.1 And as average life expectancies continue to increase , life insurance prices keep going down.
Myth 5: Insurance policies are all the same.
Truth: Policies that have similar names may differ substantially in what they cover. So before you buy based on price alone , it pays to read the fine print.
Myth 6: There's no reason to insure a stay-at-home spouse.
Truth: Your stay-at-home spouse may not earn an income , but think of the services he or she may provide for free: child care , meal preparation , housekeeping and more. With that spouse gone , life suddenly gets a lot more expensive. Life insurance can defray the cost of hiring help in your partner's absence.
Myth 7: Buying life insurance is a hassle.
Truth: Today , you can use simple online tools to determine your life insurance needs , compare options and apply on the spot. Explore at your own pace with no high-pressure sales tactics. And if you have questions , call us.
Myth 1: Single and young people don't need life insurance.
Truth: Your key question should be: Will anyone be worse off financially if I die? Even if you have no dependents , you might leave behind credit card debt , student loans , a car payment or funeral expenses.
A small life insurance policy would cover these costs. Moreover , buying while you're young can help you lock in lower rates and guarantee coverage if you develop health problems later in life.
Myth 2: Only people with kids need life insurance.
Truth: Chances are your spouse depends on your income , regardless of whether you have children. Could he or she manage to pay the mortgage and all other household bills and debts alone? A life insurance policy could help your partner keep the house and maintain the same standard of living.
Myth 3: If your employer provides coverage , there's no need for more.
Truth: Many corporations provide their employees with free life insurance worth once or twice their annual salary. Similarly , the military's Servicemembers Group Life Insurance (SGLI) offers great rates on policies up to $400 ,000. These are nice benefits , but if you leave your company or the military without a separate policy in place , it may be difficult or even too late to purchase one when you need it most.
Myth 4: Life insurance is too expensive.
Truth: It probably costs less than you think. For example , a healthy 30-year-old male can get $250 ,000 of 20-year term coverage for less than $15 per month.1 And as average life expectancies continue to increase , life insurance prices keep going down.
Myth 5: Insurance policies are all the same.
Truth: Policies that have similar names may differ substantially in what they cover. So before you buy based on price alone , it pays to read the fine print.
Myth 6: There's no reason to insure a stay-at-home spouse.
Truth: Your stay-at-home spouse may not earn an income , but think of the services he or she may provide for free: child care , meal preparation , housekeeping and more. With that spouse gone , life suddenly gets a lot more expensive. Life insurance can defray the cost of hiring help in your partner's absence.
Myth 7: Buying life insurance is a hassle.
Truth: Today , you can use simple online tools to determine your life insurance needs , compare options and apply on the spot. Explore at your own pace with no high-pressure sales tactics. And if you have questions , call us.