When people talk about life insurance, it can cause lots of confusion and apprehension. Unfortunately, the common myths surrounding coverage result in too many people waiting too long to buy or never buying at all. Freeing your mind of these myths may help you get the right coverage at the right price and at the appropriate time in your life.
Myth #1: There’s no point in buying life insurance when you’re still young.
People think they should wait until they have dependents to provide for or large debts to cover before purchasing a life insurance policy. The reality is there are many reasons to get life insurance at a young age. for example:
- If you provide financial assistance for siblings or aging parents, you may want to consider it.
- It may also be appropriate if you have an ample amount of debt you don't want to transfer on to surviving family members if you were to pass unexpectedly.
Other types of insurance are a must, even for single people.
- If you loan money to buy your car, the lender will require you to purchase at least some insurance to protect your investment, and if you buy life insurance when you are young, it will mean lower premiums.
Myth #2: A no-medical exam life insurance is the best choice.
While it may be a good choice for some, those who are in good health would do well to consider a traditional policy. The health exam may take a little more time, but taking that time can mean qualifying for much lower rates. Traditionally underwritten policies also offer more options regarding policy length and coverage amounts, letting the buyer choose what they need.
Myth #3: Buyers need to choose between permanent and term insurance.
These are the two main types of life insurance, and choosing between them can be difficult.
- Term life insurance is the most affordable type of insurance when initially purchased, and is designed to meet temporary needs.
It protects for a given period of time (the “term”) and generally pays a benefit only if you die during the term. This type of insurance often makes sense when you have a need for coverage that will disappear at a specific point in time. For instance, you may decide that you only need coverage until your children graduate from college or a particular debt is paid off, such as your mortgage.
- Permanent life insurance, by contrast, provides lifelong protection.
As long as you pay the premiums on time, and no loans, withdrawals or surrenders are taken, the full face amount will be paid at your death. Because it is designed to last a lifetime, permanent life insurance accumulates cash value and is priced for you to keep over a longer period of time.
It’s impossible to say which type of life insurance is better for you because the kind of coverage that’s right for you depends on your financial goals and own unique circumstances. Often, a combination of term and permanent insurance is the right solution.
Myth #4: Life insurance is too expensive.
There are so many different options for life insurance today that it can be affordable for just about anyone. The thing to do is to shop around and to obtain your life insurance as soon as possible—the older you get, the higher the premium is likely to be. Term life insurance policies are surprisingly affordable and provide the coverage when it is most needed.
Myth #5. Life insurance isn’t available to senior citizens.
Many companies provide life insurance to seniors. Seniors who lose work-related coverage when they retire may be at a loss to provide for final expenses, but they can still get coverage at affordable rates, and those who are continuing to work might still need life insurance to cover lost earnings when they pass.
Important! If you don’t know about life insurance, it’s probably smarter if you don’t purchase it off the internet.
Although Life insurance can be as easy as a 20-year term policy for less than a cup of coffee each day, going through your options with a licensed insurance professional can guarantee that you get the correct amount for the appropriate amount of time and at a price that fits your budget. And many people don’t know that an agent will sit down and help you out at no cost.
There are 95 million Americans that have no life insurance, many because they don’t understand the need or are confused about their ability to qualify. The truth behind the life insurance myths is that most people do need life insurance, and it is easier and more affordable to obtain than most people think. Don’t procrastinate. Do the research and make the decision to buy your life insurance today.
Have Questions? Call (972) 991.9100
Or Start your Free Life Insurance quote with the Thumann Agency, Today.