With most things in life you will find that not having a clear and complete understanding there are always myths and misconceptions that are developed as a result of this lack of information. Here are some of the common misconceptions about life insurance:
- I’m Too Young to Need Life Insurance
There’s no such thing as being too young for life insurance. Many young adults are concerned about leaving their loved ones in a tough financial situation should they suddenly pass away. Securing a life insurance policy will have your family at ease and you will save money if you get signed up at a young age.
- Life Insurance is Too Expensive
There isn’t one set rate for life insurance, there are several different options that you can choose from all at different rates. In addition, an insurance broker or advisor can assist you with finding what works for you and suits your pockets. Term life insurance for example is very affordable.
- I’m a Stay-at-Home Parent with No Income. I Don’t Need Life Insurance
As a say at home parent you may not be making an income but they do quite a lot of other invaluable service such as taking care of the kids, housekeeping etc. If you unexpectedly pass away having life insurance can ease the burden on your family. A life insurance policy can take care of any outstanding debts you may leave behind and even help with the kids’ education.
- I Have Money in Savings, so I Don’t Need Life Insurance
It’s great to have money in your savings but financial planners advise that you should have enough insurance coverage for 5-7 years of your salary, if you have children or a large debt it should be 10 years. Who knows, you may have that much saved up but even in that case it’s possible you could have to pay as much as 45% on estate tax and your account can be temporarily frozen upon death. Avoid all this financial hardship with life insurance.
- I’m Too Old to Qualify for Life Insurance.
You may think well you’re already going down in age so it doesn’t make sense to get life insurance or you may not feel like you can afford it since your no longer working. However, many insurance companies offer affordable life insurance to seniors.
Contact a broker or advisor to assist you in finding what works best for you.