Many of us avoid thinking or talking about life insurance as thinking about death isn’t exactly the most enjoyable way to spend our time. We will, however, do anything to protect our loved ones, and making sure those that depend on you are properly protected in the event of your death is all-important. Life insurance can be confusing so were here to debunk five common myths related to life insurance.
1. It’s expensive.
According to a study conducted by Life Happens and LIMRA, “cost is the reason most Americans give for not owning life insurance, yet 80% of consumers misjudge the price for term life insurance, with Millennials overestimating the cost by 213%, and Gen Xers overestimating the cost by 119%. “ The truth is life insurance can cost less than one dollar a day.
2. I don’t have kids so I don’t need life insurance.
This is false as not having children doesn’t mean you don’t have anyone who is financially dependent on you. Whether you have a spouse or aging parents that rely on your income, having life insurance will protect them in the event that you pass away.
3. The life insurance I get through my work is sufficient.
Many employers offer a life insurance plan to their employees. Though this is still beneficial, it typically only offers you with coverage equal to 1-2 times your annual salary, while you generally need closer to 5-8 times your salary. Some experts even recommend 10-12 times your annual salary. You may also lose your life insurance coverage if you leave your job. It’s best to speak with an agent about whether your employer’s life insurance coverage is sufficient.
4. My health will disqualify me from being able to purchase life insurance.
Being ill does not necessarily disqualify you from being able to get life insurance. It can, however, increase the amount that you pay. There are a lot of companies that specialize in high-risk cases as well.
5. I am too young to worry about life insurance.
The amount you pay for life insurance depends on many factors, but age and health are both very important. The longer you wait to get life insurance the more expensive it becomes, so it’s important to start considering it early in your life.