Having life insurance is one of the best ways to protect your loved ones if something were to happen to you, and can provide you with peace of mind that the people you care about most will have the financial support they need. With so much information available about life insurance these days, it can be hard to know what’s true and what’s a misconception. In this article, we’ll help you sift through the clutter by debunking common life insurance myths so you can make informed decisions about coverage.
Myth: Life Insurance is Expensive
One of the biggest misconceptions about life insurance is that it’s expensive. While the cost of your life insurance premiums will depend on many factors like your lifestyle, health, age, gender, occupation, and hobbies, coverage is often much more affordable than you think. For example, term life insurance is popular due to its affordability, since you can buy only as much coverage as you need. You may be able to find additional ways to save when you partner with an insurance brokerage, like SelectQuote, where our experienced licensed insurance agents may be able to find you plan options for less than $1 a day.
Myth: Life Insurance Through Your Employer is Enough
Group life insurance is a common benefit offered by many employers. While this option is convenient and affordable, it likely won’t provide you enough protection for your loved ones, and you have the added risk of losing coverage if you change jobs. Supplementing group life insurance through work with a policy that you purchase individually is an easy way to help ensure those who matter most to you have adequate financial protection in the event of your passing.
An individual life insurance policy also allows you to customize your coverage based on your specific needs, taking into account factors such as family size, lifestyle, and financial obligations. This customization can provide a more tailored and comprehensive level of coverage compared to the standardized policies offered by group life insurance.
Myth: You Only Need Life Insurance if You’re Married or Have Children
Many people assume that you don’t need life insurance if you’re single or childless. However, life insurance benefits everyone, regardless of marital or parental status. Even if you don’t have children or a spouse, having life insurance can help cover final expenses, pay off outstanding loans, and leave a legacy for extended family members, friends, or even charity.
In some regions, your estate may be subject to taxes upon your passing. Life insurance proceeds can also be used to cover these taxes, ensuring that your assets are passed on to your chosen beneficiaries without a significant tax burden. It’s also important to consider that life insurance premiums are typically lower when you’re younger and healthier. By securing a life insurance policy early, you can lock in lower premiums and secure coverage regardless of any future health issues that may arise.
Myth: Applying for Life Insurance is Time-Consuming
People often assume that the life insurance application process is time-consuming and overwhelming. However, working with an independent broker like SelectQuote can make it much more efficient. With licensed insurance agents doing the shopping on your behalf, you’ll save time comparing plans and carriers, so you can quickly and easily find the right coverage for your family and loved ones.
Let SelectQuote Answer Your Questions About Life Insurance
No matter what myths you may have heard about life insurance, securing the coverage you need is an important aspect of proper financial planning for you and your loved ones. Fortunately, SelectQuote is here to help answer any questions you have about life insurance, from busting common misconceptions to walking you through the different coverage types available to you.
We have nearly 40 years of experience helping people from all walks of life find life insurance. Our licensed insurance agents will guide you through every step of the process, ensuring you feel supported, informed, and empowered in your decisions.
