There are numerous myths about life insurance, probably because death – and the resulting life insurance claim – is not something most of us want to think about. So, to dispel these myths about life insurance and assist you in obtaining the coverage you require, we’ve created a simple life insurance myth-busting guide.
Myth #1: I am single. Life insurance is just for people with kids.
This is one of the most common life insurance myths. Basic life insurance is required to cover the personal debt, hospital fees, and burial costs. Uninsured people leave their expenditures to their families to deal with in the event of death, which might put them in a financial bind.
You can also donate an amount to a favorite charity or another deserving cause through your life insurance.
Life insurance is a more straightforward, efficient, and time-saving method to address final expenses.
Finally, buying life insurance can help you lock in lower rates if you want to have children in the future.
Myth #2: I’m too old to be covered by insurance.
Many people feel that they are too old to be covered by life insurance, similar to the “I’m too young” myth. Even as you become older, however, you still have a lot of choices. Most life insurance companies enable you to apply for term life insurance well into your 60s or beyond. This insurance typically starts at around $100,000, allowing you to get sufficient coverage to safeguard your partner and loved ones when you pass away. You can qualify for a final expense insurance coverage up to the age of 85 if you’re searching for a way to aid your family with funeral costs, burial charges, medical bills, and other expenses.
Myth #3: Life insurance is expensive.
Do you believe you cannot afford life insurance? You may be overestimating the cost. According to studies, half of consumers believe life insurance is three times more expensive than it is, with millennials overestimating the cost by up to five times. A night at the movies or a game of mini-golf is more expensive than the monthly premium for average 30-year-old coverage. Another harsh reality is that life insurance costs rise with age, often by 8 to 10% per year. That indicates that if you get a life insurance quotation for $40 a month when you’re 38, you can anticipate it to grow to $44 a month when you’re 39 and $48 a month when you’re 40. You can escape the price spikes of age if you lock in that $40 a month rate now.
Myth #4: I won’t need life insurance. My workplace has a group policy.
This could have been more true 40 or 50 years ago when individuals stayed at the same job for 40 or 50 years. However, because your company controls the policy, you will likely lose your life insurance if you leave that company. Employers are also reducing this benefit, with only 48% of companies offering group life insurance in 2017, down 23% from 2006. The amount of coverage provided by those who offer it is frequently less than the amount recommended by most financial experts, which is five to seven times your annual salary. Even if your circumstances change, having your life insurance policy from a reputed life insurance company guarantees that you are always covered.
Myth #5: Without life insurance, my family will be alright financially.
Do you believe you have enough money in your savings account to cover the worst-case scenario? You may need to plan for more than you expect. You should have seven to ten times your annual salary in life insurance, enough to cover both current and future expenses. Most people would find it difficult to save that much money. That may explain why nine out of ten Americans believe a family’s breadwinner should buy life insurance.
Do you still find life insurance to be puzzling?
That is why we are here. Our goal is to make finding the right policy as simple as possible. So call 503-928-6918, get your questions answered, and gain confidence in your ability to safeguard your family.