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Myth 1: Life insurance is too expensive.
There are a wide variety of plans available. Depending on the person’s age and the coverage that they select, the costs will vary. Some people can find very affordable plans to meet their needs that fit within their budget. Discussing their needs and goals with a professional can help people to find the right plan for them. Prices have changed over the years so it is worth looking into the current options.
Myth 2: All policies are the same.
This is certainly untrue. Not only do plans vary by provider, people can tailor them to meet their specific needs. They can choose different levels of protection and benefits. It is important to look at more than just the price. Read the details about what is covered and how the plan works. A person may pay a little bit more but get a policy with more comprehensive services and save in the long run.
Take the time to compare what different policies provide. Also assess personal needs. In addition to paying for medical and funeral bills, having coverage that will satisfy other debts and living expenses for the family is valuable. Professionals can help people to assess their cash flow and debt, and determine how much coverage is most beneficial.
Myth 3: Single people do not need coverage.
Although single people may not have any dependents relying on them, this does not mean that they do not need coverage. If something should happen to them, their family is left to cover the costs of their care, funeral, and any outstanding debts. Insurance coverage can also help to support loved ones in the future and provide them with more financial security.
Myth 4: It is okay to wait to purchase a policy.
When a person purchases a life insurance policy is a matter of personal preference, but it is never too soon to invest. Even though the person is young and healthy now, they have no way of knowing what the future will bring. Should they become ill later on, they have the comfort of knowing that they already have a policy in place. This can reduce the stress and burden they feel.
Myth 5: People with health problems cannot purchase life insurance.
Insurance companies work with people who have a wide range of needs. While it is sometimes less expensive for someone in better health to get a policy, that does not mean that others are excluded. Some providers offer special plans for those who have existing medical problems to address their needs. This is another reason why early planning is key.
Myth 6: Employer coverage is enough.
“It is a nice benefit when employers provide life insurance coverage,” says Trevor Garbers, “but there are limitations.” For example, the amount of coverage may cover one to two times their salary but still fall short when it comes to meeting their family’s needs as well as other expenses. Also, if the person should leave the company, their coverage ends. It is not generally something that they can take with them. If they want to continue having coverage, a separate policy is required.
A separate policy can also supplement what their employer provides. It can help to better meet the individual’s and family’s needs and expenses. Should they leave, they can adjust their personal plan to make sure that it is still beneficial and provides adequate coverage.
Myth 7: Stay-at-home spouses do not need coverage.
Although a stay-at-home spouse may not bring in a salary per se, they provide valuable services. Should that person pass away, will the remaining spouse have enough to cover child care or cleaning costs? Will they still have the means to maintain the same type of lifestyle they are accustomed to? A non-employed spouse may not bring money in, but they help to save on the amount of money going out.
Myth 8: Buying a life insurance policy is a once-and-done event.
Just because someone’s life insurance policy was appropriate at the time and provided them with the coverage they needed does not mean that they can forget about it. As their life changes and they get married, buy a house, have children, get divorced, or retire, it can affect the type of coverage they need. Reviewing their coverage periodically can help to ensure that it still fits their needs even as their life has changed.
This gives them the opportunity to make adjustments. They may find that what they once needed is not enough, or is more than enough. These changes could also affect the cost of their policy. It is important to make sure that they stay up-to-date so should anything happen, they are prepared.
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