There are many misconceptions about life insurance, and questions often arise when it comes time to review and purchase a life insurance plan. You might believe that insurance is too expensive, that it is only for older people, or that you are not old enough to buy life insurance. Life insurance is not a legal requirement, and many people overlook just how valuable and necessary it is. Life insurance is a topic filled with misconceptions, and there is no better time than now to clear away some of the confusion.
Misconception 1: Life Insurance is EXPENSIVE
A lot of people believe that obtaining life insurance requires exorbitant costs. Nearly half of Americans estimate the price of insurance to be three times higher than it is. For every individual, the price can vary based on age, gender, and overall health. One of the biggest misconceptions is that insurance is too expensive or unaffordable for the average family. According to recent data provided by Quotacy, the average policy cost is $26 a month for a 40-year-old, $500k term policy for 20 years. While rates can vary dramatically, we can see that it is not as expensive as you might think, and it is also worth mentioning that as your age increases, so will the monthly premium amount paid. The best time to buy a policy is sooner rather than later.
Misconception 2: My Insurance from work is enough
That may be true for some people, but it does not necessarily apply to everyone. A single person with very modest means with insurance from their employer may have sufficient coverage. If a person has a spouse or dependents, there are different insurance needs, and income replacement should be part of the policy. Many financial professionals recommend a life insurance benefit multiplied 10 to 15 times your salary. Today, depending on burial or cremation, it is not uncommon for the average funeral to cost up to $9,000 or more. Caskets and urns can cost thousands of dollars, depending on the style and material used. Always take advantage of the policy provided by your employer. If you have more needs, consider getting more coverage.
Misconception 3: My health stops me from being eligible
A chronic condition does not exclude you from getting life insurance. An underlying condition may mean higher premiums, but you still have options available. If your health issues are super severe with ailments such as diabetes, heart problems, or high cholesterol, your life insurance quotes might be higher, but in many cases, they’re still available — and might still fit your budget.
Life Insurance Questions?
We hope that this information on misconceptions about life insurance is useful to you. We work hard to provide information that can help you learn more about life insurance.
If you’d like to learn how we can help you plan your retirement, call Empower Brokerage at (888) 539-1633 to speak to one of our Life and Annuity experts or leave a comment down below.
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