Discussing life insurance may not always be the most comfortable conversation to have. Thinking about death, and how your family would continue to live without you is not pleasant. However, it is a very important financial product to consider.
Many people put off buying life insurance for several different reasons. LIMRA has recently completed a survey, where consumers shares several reasons why they don’t purchase life insurance. In this article, we’ll discuss these reasons, and then ‘debunk’ these myths.
Myth # 1: People who are young do not need life insurance
People don’t realize that life insurance rates are partially determined by your age, at time of application. Locking in a policy while you are young is generally a wise move. Many younger individuals have student loans, car payments, and credit card debt. Life insurance would be the perfect financial product, to offset this type of debt. Considering a life insurance policy at a young age is definitely something you’d want to think about.
Myth # 2: Life Insurance is too expensive
One common myth about life insurance is it costs too much money. This couldn’t be further from the truth. Due to advancements in science and medicine, people are living longer. In turn, companies have adjusted their premiums, and life insurance rates are at an all-time low. People in average, to above average health can qualify for coverage that is very affordable. Many people would qualify for $1,000,000 of coverage for less than $50 per month. Don’t let this common myth detour you from exploring life insurance options.
Myth # 3: I only need life insurance thru my employer
Sadly, this myth couldn’t be further from the truth. Many people don’t understand that your employer owned life insurance is not guaranteed. Meaning your employer could do away with it at any point. Or if you change jobs, the insurance doesn’t go with you. Maybe your new employer doesn’t offer group life insurance. While group life insurance is a great ‘perk’ of the job, you would also want to own a policy outside of the work place. That way if there are any chanes to the group policy, you’d have a separate life insurance policy in place. Lock in an insurance policy that you own, while you are young and healthy. Don’t put all your life insurance eggs in one basket!
Myth # 4: People with chronic diseases can’t qualify for life insurance
Unfortunately, not everyone who needs life insurance is in perfect health. Many people in the United States are living with chronic illnesses. Most likely, you know someone who has a history Multiple Sclerosis, Diabetes, or maybe even Breast Cancer. Truth is, you can get life insurance if you have a history of chronic diseases. Underwriting guidelines have changed considerably, over the last few years. Many life insurance options would be available, but you will need to work with an agent, who specializes in these types of diseases. Ideally, you’d need to seek out an independent life insurance agent who represents several different companies. As of late, life insurance with diabetes can even be obtained without taking a medical exam. Don’t let your health history prevent you from looking for coverage.
Myth # 5: Life insurance can only be used when you are dead
This may sound a little strange, but many types of life insurance may be ‘used’ while a policy holder is living. Over time, life insurance companies have begun offering built in living benefit riders. Some of the most popular riders include Chronic Illness, Terminal Illness, Critical Illness, and even a Long Term Care rider. If you had significant health issues, you could accelerate part of your death benefit while living, and use the money however you see fit. Having a life insurance policy that offers flexibility is important, to certain individuals. You never know what’s going to happen tomorrow!
The Bottom Line
Life insurance isn’t an easy topic to tackle by yourself. That’s why it’s a wise decision to work with a knowledgeable life insurance agent. They will be able to help you achieve your financial objectives, and wok alongside you. Don’t let ‘myths’ prevent you from obtaining this valuable coverage.