Myth #1 – Single And Young People Don’t Need Life Insurance
One mistake that a lot of single and young people make is “throwing caution to the wind”. A young or single person is much more likely to not have life insurance than someone who’s married, older, or has kids.
Life insurance is important for a young and single person to cover things like student loans, credit card debt, funeral expenses, auto loans, and more. You’d be surprised at the amount of debt a young person can rack up during their younger years.
Myth #2 – Only People With Kids Need Life Insurance
Whether or not you want to accept it or not, your spouse is dependent on your income whether you have children or not. If you were to die tomorrow, a life insurance policy can ensure that your spouse will have the money they need to pay off debts and maintain their standard of living.
It’s not just people with kids that need life insurance, it’s pretty much everyone.
Myth #3 – Employee Life Insurance Coverage Is All You Need
This is a misconception that a lot of people wind up believing. Many people think that just because they’re covered by their work life insurance policy, that they don’t need any additional policies to protect them.
While the amount of coverage your work offers may be great, if you ever have to leave the company or get laid off, then finding a new policy at an older age may be next to impossible to afford. Think ahead and “lock in” an additional policy while you’re still young.
Term life insurance rates have gone down in recent years! Be sure to check out the link for more details!
Myth #4 – Life Insurance Is An Expense You Can’t Afford
Life insurance costs a lot less than you might think. For example, a healthy, non-smoker 30 year old man can secure $250,000 in coverage for only $18.92 per month. That’s a pretty low rate, and the payoff if you die is big enough to cover everything.
Think about it for a second. Wouldn’t you want your family and loved ones to be taken care of in the event of your death? With an insurance policy like this, all your past debts and bills would be paid off and wouldn’t ever be a burden on your family.
It makes the most sense to get covered under a life insurance policy that doesn’t cost a lot, but offers a substantial benefit amount.
Myth #5 – All Insurance Policies Are Created The Same
When shopping for life insurance, it really pays off to read the fine print. Life insurance policies can differ greatly when it comes to coverage amounts and what they actually offer. Be sure to go over any policy you’re considering with a professional to ensure that you get the right coverage for you.
Myth #6 – A Stay-At-Home Spouse Doesn’t Need Life Insurance
Although a Stay-At-Home spouse doesn’t actually earn an income, they do provide a valuable set of services such as meal preparation, house cleaning, and child care that can’t easily be replaced. Having life insurance in place will mean that you can weather the burden of taking care of things at home with a nanny or house sitter.
Myth #7 – Buying Life Insurance Is A Huge Hassle
Buying life insurance both online and in person is a lot easier than it used to be. The policy plans are more streamlined and easier to understand, there’s not a lot of paperwork, and the cost to be a policy owner is a lot cheaper than you might expect.
In today’s turbulent world, it really pays off to have a great life insurance policy. You can protect your family from financial hardship and get the peace of mind of knowing that you’re doing the right thing in life.
Author Bio: My name is Lance Peterson; I am a graduate in Finance from UPenn. I am a banker, whose expertise stretches to areas like loans, investments, hedge funds, insurance and other related fields. I like keeping myself updated about the global financial scene.