Life insurance can seem complicated, and most people don’t even want to think about it. But there comes a point in everyone’s life when some coverage doesn’t sound too bad. But then there’s everything you think you might know and it can seem intimidating or not worth it. Today we’ll be dispelling some common myths and misconceptions surrounding life insurance.
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“We don’t have room for it in the budget”
This common misconception comes up frequently. Perhaps one of the best features of a life insurance policy is its flexibility. The way it works is you get out what you put into it. The better the coverage is, the higher the premium will be. So if its budget you’re concerned with we’ve got options. Setting a lower death benefit may be beneficial to at least get some coverage now as opposed to going without. As you go along your life you can come back and update your coverage to suit your needs as they evolve.
“I’m young and healthy, I don’t need life insurance”
When you think about life insurance it always seems to be a thing for the elderly. People reading this may think that since their health is in top shape or that they are too young, that life insurance is just a waste of money. Well, the two best times to buy life insurance are when you are young, and when you are healthy. Luckily those two tend to coincide. With this in mind, know that delaying will lead to higher rates down the road.
“My job gives me a life insurance policy, so I am covered”
A common rebuttal I hear is “I have a policy through work.” Reevaluating major needs may reveal some cracks in your coverage:
- Mortgage
- Auto loans
- College tuition
- Emergency fund
These pooled together can quickly blow through the coverage offered by your employer. Typically the death benefit is around your annual wage. That would be enough to get by for a little while but why put your family at risk like that? On top of that, what are the odds that this job will be the one you have for the rest of your life? Consider supplementary policies to protect what you are working hard for.
“I am too unhealthy to get decent rates”
While its true that if you have medical conditions you may not qualify for the best rates, it’s still possible to find a policy that is budget friendly. There are a variety of different carriers out there that specialize in different types of pre-existing conditions. So if you get denied coverage or get quotes that seem very high don’t be discouraged. I would advise speaking to a professional to see all your options.
“My spouse works for the two of us. They might need one, but I don’t.”
There are a lot of benefits to a one income household. But there are a lot of jobs that get taken care of behind the scenes:
- Yardwork
- Child-care
- Home cleaning
- Laundry
- Meal preparation
If the person whose job these are passes away there must be a solution. That is a lot of money to replace these roles if they were hired. That’s a landscaper, babysitter, laundromat, maids, and eating out. Life insurance can help cover these things, at least until a long term solution is figured out.
Life insurance can seem confusing and overwhelming. Don’t believe the myths and inaccurate information. Talk with an experienced life insurance broker and they can help you easily navigate the life insurance waters.