Although life insurance is a financial tool that has been around for centuries, providing peace of mind and financial security to hundreds of millions – perhaps billions – of people over the course of history, there are still many myths and misconceptions surrounding life insurance that can delay or prevent people from obtaining the coverage they need. In this article, we’ll review and debunk some of the most common life insurance myths and provide the facts you need to make an informed decision about purchasing life insurance.
Myth: Life insurance is too expensive.
Fact: Life insurance can be surprisingly affordable, especially if you purchase coverage at a younger age. The cost of your policy will depend on factors such as your age, health, and lifestyle, but many people are surprised to find that they can obtain significant coverage at an affordable price.
Myth: I don’t need life insurance if I’m young and healthy.
Fact: While it’s true that younger, healthier people are typically at lower risk of death, unexpected accidents and illnesses can happen to anyone. Life insurance can provide financial protection for your loved ones in the event of your unexpected death, regardless of your age or health.
Myth: I don’t need life insurance if I don’t have any dependents.
Fact: Even if you don’t have children or other dependents, you may still want to consider life insurance. For example, if you have a mortgage or other debt that would be difficult for your family to pay off without your income, life insurance can provide the funds they need to free themselves of your expenses.
Myth: My employer-provided life insurance is enough.
Fact: While many employers offer life insurance coverage as part of their benefits package, this coverage is often limited and may not be sufficient to meet your needs. In addition, if you leave your job or are laid off, you may lose this coverage entirely. It’s important to evaluate your life insurance needs and consider purchasing additional coverage independent of your employer if necessary.
Myth: I can’t get life insurance if I have a pre-existing health condition.
Fact: While it’s true that some pre-existing conditions may make it more difficult or expensive to obtain life insurance, many people with health conditions are still able to obtain coverage. It’s important to work with a knowledgeable, experienced, and independent life insurance agent or agency who can help you find the coverage you need.
Myth: I will only need life insurance until…
Fact: The idea that life insurance is only necessary for a predefined period of time, such as until the kids are out of the house, until the house is paid off, or until retirement, is a common misconception. The reality is that life is unpredictable, and the future is uncertain. Life insurance needs can change over time, and it’s important to consider long-term and even permanent life insurance needs. Events such as unexpected illness, disability, loss of employment, and other special circumstances can significantly impact your financial stability and the ability to provide for loved ones. Furthermore, the cost of insurance premiums increase with age and deteriorating health. It’s critical to both evaluate your current needs and consider all future possibilities before purchasing a policy.
By understanding these common life insurance myths and the facts behind them, you can make an informed decision about your coverage and ensure that you and your loved ones are protected in the event of the unexpected.
CEG Life Makes Life Insurance Easy and Understandable
Do you need help evaluating your life insurance needs or have additional questions about how life insurance should fit into your financial plan? At CEG Life Insurance Services we can provide expert advice and customized solutions to help financially protect you and your family. Contact us today to learn more.