5 Myths About Life Insurance
2020 made it clear that things can change in an instant. It’s September, which means it’s Life Insurance Awareness Month. It can be an uncomfortable and scary thing to talk about, but an important one at that. Now more than ever, we should protect ourselves and our loved ones. Did you know that 83% of Americans say that they need more life insurance coverage? To change this, let’s talk about 5 myths of Life Insurance.
- If you are young, you don’t need it
We all think we’re invincible when we’re young, but this year has shown that life can happen to anyone. It’s important to consider buying Life Insurance while you’re young because it’ll cost the least. For example, when you’re young and healthy, it could cost you $15 a month, but at age 55, it could cost you $300 a month because as you age, you’re more susceptible to health risks and problems.
- It’s expensive
This is probably the biggest misconception about Life Insurance. According to a 2015 Insurance Barometer Study by LIMRA, Millennials overestimated the cost of term life insurance by 213%, while Gen Xers overestimated by 119%. Of course, not all policies are created equally, and cost will vary, but the bottom line is, term life insurance can start at less than $10 a month with varying factors.
- I’m not the breadwinner, so I don’t need it
Of course, while it is more critical for the person with the bulk of the household income to have life insurance, all that you provide has value as well. You may say, “I’m a stay-at-home Mom and don’t have a job,” but you’re so important to the family. You have duties of childcare, providing meals for the family, cleaning, and much more. If something were to happen to you, the family would need to find someone to take over those duties, and that can cost money.
- I’m single and don’t have kids, I don’t need it
Who knows where life will take you? Perhaps you’ll get married and have children or your future spouse has kids of their own. It’s distressing to talk about, but Life Insurance can cover your burial costs.
- The life coverage through my employer is enough
It’s a great benefit to you, but chances are that you’re probably not getting very much from it. It’s also important to think about when the coverage begins and the policy’s time frame. Also consider what would happen if you got laid off or left your job. A personal policy will stay with you which in turn will keep both you and your family safe and covered.
The best way to explore all the affordable life insurance options out there is to work with a professional insurance agent or advisor. American Advantage’s line is always open to answer questions and help you get started.