Life insurance is crucial in safeguarding your finances and ensuring that your loved ones are well taken care of in your absence. But for several reasons, life insurance is one of the essential aspects of life that does not get spoken about enough. This has led to increasing belief in a number of life insurance myths that prevent people from purchasing insurance policies or simply increases their mistrust of the insurance agency.
Let’s breakdown a few common myths associated with life insurance
Myth: Life Insurance is very costly
This is simply not true. By conducting proper research, you can quite easily find life insurance policies that suit your investment budget and are not financially draining. Even a relatively low annual premium can provide impressive life cover which goes a long way in protecting and meeting your beneficiaries needs.
Term insurance policies are an ideal solution for inexpensive life insurance as the premiums are low and the death benefit is quite substantial. Besides term policies, there are several other plans that offer low premiums that can be customized to suit your budget or lifestyle.
Myth: It’s Too Early to Think of Life Insurance
Quite simply, death keeps no calendar and can occur suddenly, without warning and at any age. There have been many cases of people passing away young and leaving behind a family without a financial plan or a way to fend for themselves due to the absence of a life insurance policy.
There are a vast array of life insurance policies to choose from which allows you to opt for a suit that is properly suited to your income bracket and age. Additionally, you can get investment goal benefits from life insurance policies.
Myth: Single People Don’t Need Life Insurance
Unmarried or single people are still prone to the effects of aging and will require adequate funds to cover the costs of debt, if there are any, and hospitalization and funeral expenses. Retirement and loss of income are two more factors that should motivate single people to purchase life insurance.
If there is no policy present, all the expenses listed above can add up to be a lot and become financially draining.
Myth: Non-Breadwinners Can Avoid Owning a Life Insurance
Each member in a family, whether they are an earner or not, has a role to play in the house. The absence of that individual can be quite costly for the entire family. If a stay at home partner dies, then the earner of the family might need to hire help to take care of day-to-day household activities or a nanny for watching the kids.
Moreover, in such a case, there will be a period of time that the earner in the family will need to take time off from work and spend with the family to recover from their loss. There is a collateral cost involved in this scenario that can be overcome if the non-breadwinner has a valid life insurance policy.
Myth: Group Insurance Plans are more than enough
Although this might be true in some cases. But usually the validity of group life insurance plans only lasts as long you work with that particular employer. Changing jobs means that you will be required to re-start with a new group policy. Additionally, if you have a spouse with children, or maybe you have incurred a lot of debt that your spouse and other dependents might end up being burdened with, it is advisable to opt for an individual life insurance policy as well.