Five Misconceptions About Life Insurance

Personal Insurance | 11/16/2021

Written By: Scott Toombs

As Thanksgiving nears and with it the start of the holiday season, many people tend to be introspective about life, including the importance of family and friends. Regardless of age, it’s natural to think about what is ahead as we enter the holiday season and get ready to turn the calendar to a new year. One of the topics that is often reviewed at this time is making sure family is protected at the time of the passing of a loved one with life insurance. While life insurance is extremely important, there are misconceptions associated with it that many need clarification on.

Misconception 1: Life insurance is expensive.

This is perhaps one of the biggest myths about life insurance. Over 50 percent of Americans overestimate the costs of term insurance by 3 times the actual cost. For a healthy 35-year-old person, the monthly cost of life insurance is less than a monthly Netflix subscription.

Misconception 2: You don’t need life insurance if you are young and healthy.

Although many young adults may not be thinking about their mortality, getting coverage when you are young can help locking in low rates for a long time. These lower rates can last for up to 40 years with some carriers!

Misconception 3: If you have health issues, you can’t get life insurance.

Typically, insurers use a person’s health to calculate rates and coverage amounts. However, that doesn’t mean you are automatically excluded from buying life insurance if you have a preexisting condition. There are many policies that do not require a medical exam to obtain coverage. Some carriers will also treat conditions more favorably than others. Your AssuredPartners insurance professional can guide you through the process of choosing the correct carrier and policy.

Misconception 4: You do not need life insurance if you are single or have no dependents.

Life insurance isn’t just for families or those with big estates. If you have student loans, car payments, or a home, you likely have debts that will need to be settled when you pass. In many instances if you have had a co-signer to help obtain the loan, life insurance can protect the cosigner. If you support a charity or non-profit, you can assign some or all of the death benefit to that organization.

Misconception 5: Life insurance at work is sufficient.

Group life through work is generally one or two times a person’s salary. This isn’t enough to support your loved ones over the long haul. These policies are normally not portable and are tied to your job. If you leave your employer, you lose your insurance. Buying individual life insurance means you are covered no matter where you work.

You may have a lot of questions about life insurance, including how much coverage is needed and what types of products are available. With AssuredPartners life insurance specialists, we give the guidance and protection your family needs. Find out more about how we can provide you with your custom Life Insurance policy at https://www.assuredpartners.com/Individual-Life-Insurance