Many people don’t bother to get life insurance. For one reason or another, more and more people don’t have enough insurance, or they don’t have any insurance. If you are like many other people who fail to purchase life insurance, it’s likely due to the preconceived notions you have about life insurance. Well, here are five scary myths about life insurance that are likely preventing you from buying life insurance, and why it may be the right choice after all.
Myth #1: You Think Life Insurance is Expensive
If you haven’t shopped for life insurance in a few years, then you probably think that life insurance will cost you your arm and leg. It won’t. In fact, purchasing a whole life or term life insurance policy can fit nicely into your budget. Ironically, 29 percent of Millennials and 23 percent of Gen Xers place going on vacation and participating in recreational activities higher than getting life insurance. Clearly, the problem isn’t whether you can afford life insurance, but whether you value having life insurance and prioritizing your expenses.
Myth #2: You Think You Need a Million Dollars in Life Insurance
During many insurance surveys, researchers found that many people have no clue how much life insurance they need. They think they have to purchase enough to take care of their family for an extended period of time, but that’s not always the case. You only need enough life insurance to help your family meet their financial obligations, such as pay off the mortgage or the car. You can also purchase additional insurance to keep your family afloat while they adjust to having only one household income. However, you don’t need an excessive amount of life insurance to sustain your family.
Myth #3: You Think Employer-Sponsored Life Insurance is Enough
If you work full time, then you may have been offered life insurance when you signed up for benefits. Although the life insurance your employer offers you is inexpensive, you will likely need more coverage. Most of the time, your employer-sponsored life insurance only covers one year of your annual salary. With the average salary in the United States less than $54,000, your spouse wouldn’t be able to pay off the mortgage if he or she relied solely on your employer-sponsored life insurance policy.
Myth #4: You Think Poor Health Disqualifies You
Although your health is a factor that many life insurance companies assess to determine what you will pay for your health insurance, it doesn’t automatically disqualify you from getting life insurance. In fact, many life insurance companies have developed policies for people who are living with health issues. You should speak with your licensed insurance agent to inquire about policies that don’t require a physical examination.
Myth #5: You Think You’re Too Young to Consider Life Insurance
One of the best times to purchase life insurance is when you are young. At a younger age, you may be eligible to receive lower rates for your life insurance premiums, which can help you purchase more insurance to take care of your needs for your family in the future.
There are many misconceptions about life insurance. Many times these misconceptions prevent people from making a purchase. Be proactive and inquire about the many options your independent insurance agent has to offer. You may be surprised to find out they have an insurance policy that is the perfect fit for you.
Have you ever learned that what you believed about life insurance was simply not true? Share your myth in the comments section below, and let us know how it was busted.