Myths About Life Insurance

Life insurance is that investment you’ve been meaning to make. You just have not done so yet. It’s a valuable tool, one that can help you to accomplish many of the goals you have for after your death. Yet, many people have misconceptions about it. What’s the truth? Do you need life insurance? What does it really do for you? Here’s a closer look.

Myth: Life Insurance Only Covers Family After My Death 

That’s not always the case. Some policies can help you during your lifetime, too. They can build up value during your lifetime that you can access later on, such as through a retirement income. You may also be able to borrow from your policy. Some also give you access to withdrawals for key life changes. 

Myth: I’m Single and Young – There’s No Need to Buy It Now 

You may not have a dependent just yet, but now may be the best time for you to invest in life insurance for several reasons. First, it is likely to cost you less now than when you are older. Also, buying a policy now may help you to choose more lucrative options such as variable life or universal life. These can pay you during your lifetime, too. 

Myth: I’m Too Old to Get an Affordable Policy 

This doesn’t have to be the case either. Those who are 50 or older may still qualify. Don’t discredit your access to coverage if you have an illness either. Some people may still qualify. It’s important to work with your agent. Look for a life insurance policy that fits your life right now. There’s no harm in requesting a quote. 

Myth: My Boss Gives Me Enough Life Insurance 

Take a closer look at that policy. Most have numerous limits. Many are just term life insurance policies, too. That means they cover your losses only for a set number of years. After that, you are on your own. You can supplement what your employer offers, though, with your own coverage. 

Myth: Life Insurance Is the Same for Everyone 

Most people benefit from purchasing life insurance. For those who aren't sure about a long-term commitment, the investment in term life insurance may be ideal. It reduces financial stress and provides funds your family may need at some point. You may not need whole life insurance, but most benefit from term life. 

Life insurance doesn’t have to be complex. It should be a cost-effective policy that fits your goals and provides the level of protection you desire.