Debunking Life Insurance Myths

Most people are skeptical when it comes to buying life insurance. Is it the life insurance itself? Or the uncomfortable conversation of how to assess one’s financial needs after the death of a loved one? After all, who likes to talk about death? Below are some debunked life insurance myths that can help convert an emotional response to a better thought-out, decision-making process to meet needs after the loss of a loved one.

Myth #1 – No One Needs Life Insurance

When a loved one dies, funeral expenses and medical costs can cost thousands of dollars. Almost everyone can benefit from life insurance because the policy will cover those costs. If a loved one passes on with large amounts of debt and has no policy to cover that debt, the burden will fall on their closest relative. To protect the ones you love, it’s necessary to have life insurance.

Myth #2 – My Employer’s Life Insurance Policy Has All My Expenses Covered

Employer paid policies usually only cover one to two years’ salary or just a flat amount. Financial experts recommend at least 6 to 12 times your annual salary to cover expenses your dependents might have. Keep in mind that employer policies end when you leave the company. If you start your own personal policy early, your rate will be locked and will not increase. You also won’t have to worry about it if you lose your job.

Myth #3 – My Lifestyle Won’t Affect My Premiums

The lifestyle of an insurance policyholder is thoroughly examined to assess the risks associated with that person. Factors, such as smoking, occupation, location and weight, can all affect premiums. Even having a risky hobby like rock climbing can affect premium rates. If all facts are not disclosed with the insurer, one could lose their coverage when needed the most.

Myth #4 – The Best Way to Obtain Life Insurance is by Buying Online

It’s possible to find the cheapest quote from online insurance sites, but there are often many hidden costs. The best bet is to compare quotes from real insurance agents to help find the right plan and term conditions. You can contact an agent or compare quotes through this site to determine what plan will meet your needs the best.

Myth #5 – I’m Too Young for Life Insurance

This myth can be pretty costly compared to the other life insurance myths. You’re never going to be as young as you are today, and the younger you are the better the premiums are. Now is arguably the best time to apply for life insurance. If you have assets or loved ones to protect, life insurance should be a consideration regardless of your age.

Don’t let these life insurance myths stop you from protecting your loved ones when you aren’t there to do so. If you need to contact an agent to help you find the policy that is best for you, you’ve come to the right place!

Since insurance is oftentimes overwhelmingly confusing, we want to shed light on this industry by answering YOUR questions.  So if you have any questions or concerns, comment below and your question may be the topic of our next article!

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