Life insurance can provide your family with the peace of mind that comes with knowing that your final expenses will be paid and that your family can continue to pay any of your outstanding debts. Unfortunately, although you know that life insurance is important, the process of finding the right insurance for you can be difficult, especially if you buy into many of the myths associated with life insurance.
Here are a few of the most common misconceptions about life insurance that you should not believe.
My Life Insurance Only Makes Sense If I Have a Spouse and Kids
Marriage and children are huge life events that often prompt people to think more about their future and purchase life insurance. If you are young, single, and do not have any kids, you might assume that the added expense of life insurance does not make financial sense. In reality, even if you do not have a family of your own, this does not mean you will not leave behind any expenses if you prematurely pass away.
From the remainder of your mortgage to student loan debt or the remainder of your car loan, you can leave behind several outstanding debts after you pass away. Your family might be left paying some of your expenses, especially if these family members or friends cosigned on a loan.
But with life insurance, the benefits would kick in and pay these expenses, including your funeral costs, to ensure that your loved ones are not financially responsible.
I Have Sufficient Life Insurance Coverage Through My Employer
Many employers offer life insurance as a part of their benefit package, and many employees mistakenly believe that they don’t need to purchase a separate reality because they already have life insurance through their employer. Unfortunately, many times the policy provided is insufficient to cover a person’s final expenses or any other outstanding debt.
There is another issue with relying on employee-provided life insurance as well: the insurance policy is automatically cancelled when you quit, are laid off, or are fired. Because of this, you should talk to your employer about any life insurance policy to determine the amount of coverage you already have. This number will allow your independent life insurance provider to determine how much more insurance you will need to ensure your family is covered.
I Have a Lot of Savings so I Do Not Need Life Insurance
You have worked hard all of your life and have a substantial amount in your savings account, so you may think that this will be enough to cover any final expenses or other debts you leave behind if you perish prematurely. However, relying on the money in your savings account to pay your final expenses is often a mistake because this money may not be enough, which can leave your family and friends with this debt.
Instead of putting money aside in your savings account to pay for your final costs, talk to a life insurance agent about how to save money on life insurance and determine which insurance policy is right for you.
I Am Too Old to Purchase a New Life Insurance Policy
Finally, one of the most pervasive misconceptions about life insurance is that once you are over a certain age, you aren’t able to purchase a policy. In reality, many people who are in their 50s or 60s are still able to purchase a term life policy, which can help provide them with the peace of mind that comes with knowing their family is financially secure.
From the idea that your savings can cover your expenses to the notion that life insurance is only for individuals with a spouse and kids, there are several common myths associated with life insurance. Contact the professionals at Family Insurance Centers with any questions and concerns you have.