Everyone needs life insurance in life, but not everyone understands how the policy works. There’s a lot of confusion and misinformation surrounding life insurance; therefore, it’s vital to get educated before making any decisions. Let’s take a brief look at a few of the most common myths about life insurance and the truth behind them.
Myth #1: Getting A Life Insurance Policy Requires A Lot Of Money
When looking to invest in life insurance, you don’t want it to cost you a lot of money. While life insurance is essential, you don’t want to empty your account to get the coverage. People turn down life insurance because they believe it’s expensive, but that is not the case. The truth is, life insurance coverage is more affordable than people might think. You can always add or change your coverage anytime. Contact your agent to see what plan is best for you if you’re on a budget.
Myth #2: Life Insurance Is Not For Healthy And Young People
Many think they don’t need life insurance because they are healthy and young, but that’s not true. If you don’t get life insurance now, there are chances that you will need the coverage when you are older. Your age and health determine how much the policy will cost you. As a result, your life insurance coverage will cost you more if you wait until then. It’s best to purchase a life insurance policy when you are healthy and young to take advantage of this policy when you’re old.
Myth #3: Life Insurance Is Not Available For People With Health Problems
Like we said before, your age and health will determine the amount your life insurance will cost you. While it’s true that your health condition will impact the type of life insurance term you qualify for and the amount you will pay, this does not mean it’s not available at all. In this situation, you need to speak with your insurer about your options to receive the best coverage that’s best for you at the right price.
Myth #4: Life Insurance Is Only For The Breadwinner Of The Family
You are responsible for some duties if you’re married and have kids. Your death would no doubt negatively impact your family. Life suddenly gets a lot more challenging for a stay-at-home spouse who keeps the household running: childcare, meal preparation, housekeeping, and more. Life insurance gives both spouses peace of mind, no matter how circumstances may change. Having life insurance protects your family.
Myth #5: People Have To Wait Until They Die Before Getting The Benefit Of Life Insurance
Life insurance coverage offers many living benefits that let you use the policy while you are still alive. You have access to the living benefit on your insurance policy while you are alive. Suppose you have a heart attack, cancer, stroke, cystic fibrosis, ALS, and other injuries and illnesses; your life insurance policy can cover the cost of treatment. Make sure you ask your insurance agent about these living benefits and what requirements qualify for these benefits.
Myth #6: Life Insurance You Get From Your Employers Is Enough
Employer life insurance policy is good, but it’s not your only option. While it is great to get life insurance through work, keep in mind that you may not be able to take an employer-sponsored insurance policy with you if you leave your job, such as termination, retirement, or transition to a new company. Having private life insurance gives you more stability and control, so your coverage is there when you need it.
Myth #7: Life Insurance Is Not For Single Or People Who Don’t Have Any Dependents
Life insurance can help pay for expenses and settle debt like loans and medical bills even if you aren’t married. This coverage allows you to leave a good legacy behind. The benefit of this coverage can be used to fund a favorite charity, send nephews or nieces to college or pay family members’ mortgages.
Myth#8: Dependents Will Lose Most Of The Life Insurance Money To Taxes When You Pass Away
This is one of the common life insurance myths that persist. The truth is that life insurance proceeds are not taxable. The money you get is not subject to taxes, but any interest you get on them is taxable.
Now that you know the actual facts about life insurance coverage, don’t let these myths stop you from choosing the right life insurance coverage to ensure your loved ones are protected when you’re no longer around.