If you’ve never looked into getting life insurance, there may be a lot of things you don’t know or are confused about. It may not be as expensive or difficult to obtain as you think, and you may need it more than you realize. Here are six common myths about life insurance.
Myth 1: Not everyone needs life insurance, especially those who are young and healthy.
Actually, many people can benefit from life insurance whether they’re in their 20s or in their 60s. When you’re young, it’s actually a good time to purchase life insurance, as rates tend to be less expensive and more affordable. The longer you wait and the more health issues you have, the more expensive it will be to obtain a policy.
Myth 2: Getting life insurance means you need to get a physical.
A physical and health exams aren’t always a requirement. It often depends on the circumstances and the type of life insurance you’re purchasing. If you’re worried about being turned down because of a health condition, an insurance broker may be able to help you find a company that will offer coverage that factors in your condition.
Myth 3: If you have life insurance through work, you’re fine.
While a company policy is a good start, life insurance through an employer often provides too little coverage and you can’t take it with you when you leave your job. There’s also no guarantee that your next job will offer it. If you seek out a policy apart from your company benefits, you may be able to purchase one that’s cheaper than what your work offers.
Myth 4: You don’t need life insurance if you are single and don’t have children.
Life insurance may not seem necessary if you don’t have children, but debt doesn’t disappear when you die. If you have credit card or other loan debt, creditors, bill collectors and collection agencies will go after your surviving relatives for repayment. It’s best to have a policy that will cover your debts, loans and funeral costs.
Myth 5: Stay-at-home parents don’t need a life insurance policy.
Stay-at-home parents fill a vital role in their home that can be costly to replace. Without that parent, the surviving parent may need to pay for childcare, housekeeping and other services to fill the gap that’s left over, and those costs can add up.
Myth 6: Life insurance is too expensive to purchase.
An insurance broker can help you shop for options that fit your needs and budget. For example, while term life insurance only covers you for a few years at a time, it’s less expensive than whole life insurance. Additionally, your insurance representative can help you figure out how much coverage you need – a figure that many people overestimate.