5 Myths & Misconceptions About Life Insurance
Unlike science, math or geography, life insurance is not something that you can easily learn in school. It’s not like learning how to balance a check, baking lasagna, or doing car repairs.
Even if it is tricky to figure out all the rules and technicalities behind it, life insurance is something that most people should be familiar with.
One of the things that you should familiarize yourself with are the myths and misconceptions surrounding life insurance policies.
Not only do these these things make getting life insurance scary, they also prevent individuals and families from purchasing the life insurance that they need out of fear and confusion. Let’s take a look at a few of the myths and misconceptions you might have.
1. It Costs A Lot Of Money
Would you believe that 80% of Americans overestimate the costs when deciding whether to purchase a life insurance policy?
Many people think that a $250,000 term policy for a 30-year-old individual will cost around $400 to $1000 a year.
You might be surprised to find out that figure is actually pretty far off the mark. The actual price for this type of policy will most likely only cost you around $160 to $200 per year or $13 a month.
2. Single Non Parents Don’t Need Life Insurance
If you are single with no dependents, you still need to consider purchasing a life insurance policy.
Single individuals need a policy that is enough to cover their medical and funeral bills as well as any personal debt upon passing away.
If you do not have life insurance, you could end up leaving a lot of debt for your family members to deal with after your death
3. You Are Too Young To Get A Life Insurance Policy
Getting a life insurance policy makes the most sense while you are younger since the premiums are less expensive and you have fewer assets to pass on to your dependents.
The longer you wait to get a life insurance policy, the more expensive it will be. Plus, as you age you are more likely to develop a medical condition which can make the price of the policy go up.
4. It Is Recommended To Buy Term And Invest The Difference
This may be true for some people. Even though, term insurance is appropriate for many consumers, a permanent policy is a better deal if you need a life insurance for your entire life.
5. You Can Only Buy Life Insurance If You Are Healthy
Life insurance is more affordable if you are young and healthy this much is true. However, that does not mean that you can only get it if you are a young, healthy adult.
In fact, you can qualify for some policies even without undergoing a medical exam. You just need to shop around and get the best policy for you. You wouldn’t buy the first car you saw, in the same manner but with bigger stakes, you shouldn’t purchase the first policy you look at. Take some time and find the best policy to cover all of your needs and your family’s needs once you’re gone.
There are a lot of myths and misconceptions concerning life insurance policies. If you want to have peace of mind, never leave your life insurance policy out of your budget, so your bills may be covered after you’re gone.