What do you believe about life insurance? I can’t tell you how many questions I receive about life insurance, specifically about Term Life Insurance — all of which are based on MYTHS! I’m going to take the time today to address each of those myths because, chances are, you’re believing the same things…
Myth #1: I don’t need life insurance since I don’t work outside the home.
Wrong! Just because there’s no paycheck to replace doesn’t mean life insurance is unnecessary. A life insurance policy that provides coverage for a stay-at-home parent isn’t so much about the money they bring into the household, but instead about the money, they keep in the household.
In fact, have you ever considered how much it would cost to pay for childcare and housekeeping in the absence of a stay-at-home parent? Don’t underestimate how much this would require — child care is expensive and is a growing cost.
Myth #2: I’m young so that means I won’t need life insurance.
Some people are gamblers by nature and choose to take their chances by skipping out on life insurance completely. Although it is unlikely you’ll die during your working years, you’re not insuring for what’s likely to happen but instead for the worst-case scenario. That’s why term life insurance is inexpensive for young, healthy people. Buying life insurance now means you’ll be providing financial security without spending a lot of money on it.
For example, online quotes show that a $250,000 10-year term policy for:
- A healthy 35-year old woman costs as little as $165 a year
- A healthy 35-year old man costs as little as $195 a year
Do you really want to wait until you’re older?
Myth #3: It’s so cheap so there has to be a catch.
There’s no catch to term life insurance. Your basic term life insurance policy will offer you coverage so long as you pay your premium. You buy term insurance coverage for the duration of time you’ll need life insurance, whether that’s until the kids are out of school or until your mortgage is paid off.
Plus, your premiums are fixed for the length of the term. They won’t increase even if the status of your health changes.
Myth #4: I don’t need life insurance once my children are self-supporting and my mortgage is paid off.
Everybody’s insurance needs vary. But how would your spouse manage daily living expenses without your help? And what if your spouse outlives you by 10, even 20, years? Even if your children are no longer living at home and you no longer have large debts, like a mortgage, there still are questions you should consider before deciding that life insurance is unneeded.
Myth #5: Since I have life insurance through my job, I don’t need any more insurance coverage.
Oh but you do! Your life insurance coverage through your work may not be protecting you and your loved ones as much as you think. Review how much your employer-paid insurance provides and calculate whether this is enough to keep your family comfortable through the difficult times if you’re not around.
What’s more, when you leave your job for any reason, including retirement, your coverage usually stops!
Myth #6: It’s a huge hassle to get life insurance.
Thanks to the Internet, getting quotes is fast and easy. There are a number of online life insurance quote services and usually, all you have to do is answer a few simple questions to get quotes. And of course, your friendly neighborhood life insurance agent (ME!) can make it even easier for you than that!
Myth #7: A life insurance policy can’t provide coverage for MY family’s needs.
From the time you marry, buy your first home, start a family, and enjoy retirement, having life insurance means you and your family can have the security knowing you can reach the long-term financial goals you have set out.
Not understanding term life insurance and its benefits can result in too little coverage or astronomical rates. Now that I’ve set the record straight, you can make the right life insurance choice for yourself and your family. Have more questions about Term Life Insurance? Schedule a call with me today so you can be as informed as possible! To making the most informed decisions, call us today 617-800-0899