Term life insurance has many advantages. But understanding term life insurance and its advantages means sifting through the myths encompassing it; and there are many myths about life insurance. These life insurance fiction and delusions can result in too little insurance coverage causing fiscal hardship for families suffering the loss of a loved one.
To avoid this from happening to you, we’ve taken a look at the most usual misconceptions about life insurance to set the track record straight–helping you to make the right life insurance option for you and your family.
Myth #1: I do not work outside the home so I don’t need life insurance.
False! This is because there is no paycheck to replace, doesn’t mean life insurance is unnecessary. A life insurance policy that renders coverage for a stay-at-home parent isn’t so much about the money they bring into the household, but instead about the money they preserve in the household.
In fact, have you ever considered how much it would cost to pay for childcare and housekeeping in the absence of a stay-at-home parent? Do not underestimate how much this would involve, child care is expensive and is a quickly growing cost.
Myth #2: I am young so odds are I will not need life insurance.
Some people are risk takers by nature and choose to take their chances by skipping out on life insurance completely. Although it is unlikely you’ll die during your working years, you are not insuring for what’s likely to happen but instead, for the worst-case scenario.
That is why term life insurance is not expensive for young, healthy individuals. Buying life insurance now means you will be providing financial security without spending a lot of money for it.
For instance, quotes show that a $250,000 10-year term policy for:
- a healthy 35-year old woman costs as little as $15.00 a month
- a healthy 35-year old man costs as little as $18.50 a month
What’s more you may even be eligible for preferred life rates that means the annual premiums are even less! Preferred rates are lower premiums – for the same coverage – offered by an insurer based on your great health. The good news is that eligibility for preferred rates is common and could save you up to 30 per cent off the standard rate.
Myth #3: If it is really so cheap there must be a catch.
There is no catch to term life insurance. Your basic term life insurance policy will offer you coverage so long as you pay your premium. You buy term insurance coverage for the duration of time you’ll need life insurance, whether that’s until the kids are out of school or until your mortgage is paid off.
Plus, your premiums are fixed for the length of the term. They will not increase even if the status of your health changes the next day.
Myth #4: I don’t need life insurance once my children are self-supporting and my mortgage is paid off.
Everybody’s insurance needs vary. But how would your spouse manage daily living expenses without your help? And what if your spouse outlived you by 10, even 20 years?
Even if your kids are no longer living at home and you no longer have large debts, like a mortgage, there still are inquiries you should consider before deciding that life insurance is unneeded.
Myth #5: I have life insurance through my job. I don’t need any more insurance coverage.
False. The truth is your life insurance coverage through your work may not be protecting yourself and your loved ones as much as you think. Review of how much your employer-paid insurance provides and calculate whether this is enough to keep your family comfortable through the difficult times if you are not around.
What is more, when you leave your job for any reason, including retirement, your coverage usually stops.
Myth #6: It’s such a fuss to get life insurance.
Getting quotes is fast and easy and costs nothing. Insurance brokers get paid by the insurance companies and are paid well by them. It is to their advantage to give you the best quote as quickly as possible with just a few questions.
Final Fact:
From the time you marry, buy your first home, start a family and enjoy retirement, having life insurance means you and your family have the security knowing you can reach the long-term financial goals you have set out. Life insurance is also great for estate planning.
Life insurance policies provide you with customized coverage for your family’s needs. Comparing quotes on the Internet can help you find low-priced life insurance that will protect you and your family in the years to come.
- Log in to post comments