Life insurance is a complicated, but important subject. It is difficult to get to the bottom of when and how, and how much life insurance you should purchase. Not only that, but comparing life insurance rates often adds another level of uncertainty to choosing the right policy. That’s why we’re here to debunk the 5 biggest life insurance myths so you can feel confident when it is time to choose a term life insurance policy for yourself and your loved ones.
Myth #1: Term Life Insurance Policies are Too Expensive
Don’t wait to secure a low-cost life insurance policy
Too often, people make the common mistake of putting off purchasing life insurance because they assume the cost will be too expensive. This is our #1 myth to debunk because term life insurance is much more affordable than most imagine. Not only that, but the younger you are when you purchase a life insurance plan, the lower your monthly premium.
To put it simply — waiting to get life insurance later in life will lead to higher monthly payments. So, the best time to secure a low life insurance rate is as soon as possible. In many cases, term life insurance for people in their 30s and 40s will only cost about $25 to $35 per month.
Myth #2: Young People Don’t Require Life Insurance
By securing a low term life insurance policy rate as a young person, you can provide for your loved ones no matter what happens
The second most common misconception about life insurance is that it is only for people who are older, married, or have children. This is not the case — especially if you have outstanding debts like student loans. In the event of your passing, your funeral, burial costs, and any outstanding debts will become the responsibility of your family. However, when you secure a low cost term life insurance policy rate at a young age, you can ensure that your loved ones are provided for in the future.
Myth #3: Life Insurance Provided Through Work is Enough
Life insurance through your employer is great, but it is often not enough for most people
Many assume that because they have life insurance through their employer that they have enough coverage. However, in most cases, this is not true. For those who are married, have children, or outstanding debts — you are going to need additional coverage.
In order to find out how much insurance you will need while shopping for life insurance rates, first total any outstanding debts. Then, you should calculate your plans for the future including funeral costs, higher education, and any other considerations you want to put in place for after your passing. Once you have settled on a total policy amount you will need, subtract the policy provided through your work and you have an estimate for the amount of supplemental life insurance you need.
Myth #4: The Spouse Who Earns the Most is the Only Person Who Needs A Life Insurance Policy
Find out why stay-at-home parents need life insurance just as much as their working partner
Just because one partner has a full time job and the other stays home does not mean that only one spouse requires life insurance. Being a stay-at-home parent is a tough job — a job that is not easily filled in the event of your passing. That’s why life insurance for stay-at-home parents is so important. You want to ensure that you can provide for your family beyond yearly income. Often stay at home parents will opt for a 20 year term life insurance policy so that they remain covered until their children are out on their own.
Myth #5: It is Better to Save Your Money Than to Purchase Life Insurance
No matter your financial situation, it is always beneficial to have life insurance
Life insurance is your way of planning for the future, no matter what happens. If you choose not to purchase a life insurance policy, you risk whatever may come in the future. For example, if you invested in property, you might feel financially stable enough to disregard life insurance. This is not the case. Should anything physically happen to your property or the surrounding area, you could end up without a safety net later in life. This is the same for any type of investment, nothing is guaranteed in the future. Not to mention, life insurance policy rates increase year over year meaning that the sooner you purchase a policy, the lower your life insurance rate will be.
Now that we’ve debunked some of the most common life insurance myths, it’s time for you to further explore your options. Remember, the best life insurance policy for you is out there. With lots of research and a few calculations, you can choose the best life insurance policy for yourself and your loved ones.
