Life Insurance. It’s something every adult needs but many times, not something anyone wants to think about or consider. Commonly, this is because the benefits of life insurance are understated or misunderstood. Here are a few life insurance myths and the real truths behind them.
- There is no need for additional life insurance outside of what your employer provides. Typically, employer life insurance plans provide coverage up to 1 or 2 times your annual salary and allows you to purchase additional coverage up to 4 to 6 times your annual salary. For many, this amount is not enough to care for their family. In addition, group life insurance provided by your employer usually terminates when you leave the company, leaving you and your family unprotected.
- Term life insurance is all you need. This may be true for some but it is best to speak with an agent and discover whether permanent or term policies are right for you. Permanent policies may be a better fit for those who are looking for a way to help cover their estate taxes or provide for a special needs child after their passing.
- Additional life insurance is too expensive. Insurance has a stigma that it is expensive; however, life insurance usually isn’t anywhere near as bad as many people think. The cost of a $250k, 20-year term policy for a healthy 30-year old is around $50 a month.
- Only the primary financial provider needs to be insured. The loss of the “breadwinner” of the family may be detrimental to the family financial status, but the loss of a stay-at-home spouse or parent can be just as detrimental. There are many expenses that may arise after the loss of a stay at home parent such as child care, cleaning services, and time off of work for the grieving spouse.
- My health disqualifies me from additional health insurance. Many life insurance carriers provide options for those with pre-existing conditions while others may not even require a medical exam. Speak with one of our agents about your coverage options.
- Buying life insurance policies online is cheaper. Buying many things online can be cheaper than walking into a store and picking it off the shelf, but life insurance isn’t usually one of them. Going through an agent can actually open you to better rates then trying to buy an individual policy on your own.
- I’m too young to think about or need life insurance. Getting life insurance when you are young and healthy is the prime time to enroll. Rates are typically lower and even if you don’t have any heirs, having life insurance will help your loved ones with funeral expenses, school loans, or other debt.