Life Insurance Awareness Month: Life Insurance Myths

There are a lot of myths and misconceptions about life insurance swirling around in conversations these days. It is easy to understand how this might happen, as life insurance is a rather complex product. Here are five common myths about life insurance debunked for you.

Myth #1: Life Insurance is Expensive.

The truth is that life insurance is much more affordable than you think. While different types of life insurance may be more expensive than term life insurance, Term Life Insurance policies are often very affordable. Prices are considerably more affordable the younger and healthier you are, so purchasing when you are young can truly help keep your premiums low. Consult with a knowledgeable life insurance agent to find out how much a term policy could cost you. You may be surprised how affordable a policy is.

Myth #2: Stay-At-Home Parents Don’t Need Insurance

The truth is that stay-at-home parents contribute equally to a partnership as their working counterparts. They provide child care, cook, clean, chauffeur and so much more throughout the day, which saves the couple both time and money. Imagine no longer having them their to take care of these tasks. Would their significant other be able to take enough time off from work to pick up these responsibilities? If not, could they afford to hire someone to help look after the children, clean the house, etc.? Having life insurance for a stay-at-home parent can help cover the costs of hiring someone to help out around the house as the family adjusts to life without them.

Myth #3: I Only Need Enough Coverage To Pay For My Family’s Future Expenses

The fact of the matter is that getting just enough coverage to pay for your immediate expenses often in’t enough. There are several other factors that need to be taken into account. First, take into consideration the living expenses that your family will incur for the rest of their life. It is important to adjust for inflation while doing this, as prices will not remain fixed after you pass. Now add the remaining cost of your mortgage, any future college costs your children may have, and you have a number that you should aim for when determining your coverage amount. It is probably higher than what you were originally thinking.

Myth #4: You Don’t Need Life Insurance After You Retire

While this may be true for some cases, it is still a good idea to have insurance after you have retired. Often, a retired couple is on a fixed income. Should one of them die, the other may not be able to afford the cost of the burial. If for no other reason than this, it is important for retired couples to have life insurance. Retired couples can also have extra coverage to help set up their surviving spouse with enough money to live comfortably for the remainder of their life.

Myth 5: Life Insurance Through My Work Is Enough

It depends on your company and the life insurance options they provide. For a single individual, coverage through work may be enough. For an individual who is married, with kids and significant financial obligations, it may not be enough coverage. Review the options available through work and determine if they are sufficient for your needs. If they are, great. If not, purchasing a second policy independent of your work is recommended.

Different Term Life Insurance companies offer different rates based on different risks, age and a variety of other factors. Comparing your options will help ensure that you get the lowest premiums for the most amount of coverage possible. It’s instances like this that using an independent insurance agency, like SelectQuote, will help you compare companies, policies and rates, for you, it is a smart decision.

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