Life Insurance seems like a boring, unnecessary item to pay for. It’s something you can buy later in life, it’s too expensive --the excuses to avoid it are valid, right?
Don’t be fooled! Read on to see how six of the most common life insurance myths are easily debunked.
Myth #1: I’m single and I have no dependents. There’s no reason for me to get life insurance.
Actually, there is good reason for you to have life insurance as a single person. First, every person should have enough funds to cover their funeral costs and end-of-life medical bills. You don’t want to leave your family or executor with a legacy of debt and unpaid bills.
Second, purchasing a life insurance policy is the best way to be remembered for your generosity. You can choose your favorite cause to be the beneficiary of your death payout, helping improve the lives of others after you’re gone.
Myth #2: I’m a stay-at-home parent who doesn’t earn an income. My partner needs life insurance; I don’t.
Unless you sit at home every day watching TV and giving yourself pedicures, the tasks that fill your time will need to be outsourced to hired help if you suddenly pass on. Your better half may need to pay for cleaning help, a cook or a nanny – or maybe all three! All that costs money, and that money can come from the insurance payout from a homemaker’s policy.
Myth #3: Life insurance is too expensive. I can’t afford it!
The idea that that life insurance is too expensive is simply not accurate. A recent Life Happens study revealed that 80% of uninsured people who claimed life insurance was too expensive had overestimated its cost. It’s best to shop around to find a policy that meets your budget and need. You may find that the premium is peanuts compared to the benefits of having life insurance and the security of knowing your loved ones will be taken care of after you’re gone.
Myth #4: I’m too young to worry about life insurance.
Actually, there’s no better time to purchase a life insurance policy than when you’re young and agile. The premiums are usually far less expensive for those under age 35, and most people in that stage of life do not have sizable assets to pass on to their dependents.
The longer you wait to buy a policy, the bigger chance you have of developing a medical condition that will significantly raise your monthly premiums. Most importantly, dependents of the 25-35 age group will definitely be too young to be financially independent and will need the death payouts for basic survival.
Myth #5: My children are independent adults. Why would I need life insurance?
It always feels good to provide for your children, regardless of their stage of life. Leaving your dependents with an inheritance that helps them purchase a home, start a business or even put some money away for a rainy day will keep you in their thoughts long after you’re gone.
Also, you don’t want to burden your children with funeral expenses and medical bills when they’re grieving. Just the cost of a funeral and burial can top $8,000. It’s always best to have these expenses covered well ahead of time.
Myth #6: My job offers a life insurance policy for all employees. If I leave my job, I can always take the policy with me.
Unfortunately, this is false. Most employer-offered life insurance policies are not portable. If you leave your job, for whatever reason, you’ll also be leaving your life insurance plan. No one can predict the future, and there’s no way to know you’ll remain at your current workplace forever. That’s why it’s best to purchase a separate life insurance policy, even when your employer provides you with one. Plus, buying your own policy will allow you to choose one that best suits your needs.
It’s never fun to think about what will happen after we’re gone. Taking the time to plan for end-of-life expenses, though, and leaving loved ones with enough to live on when we’ve passed, is the responsible thing to do. Don’t let a life insurance myth keep you from buying a policy!
© Genisys Credit Union and www.genisyscu.org, 2017. Unauthorized use and/or duplication of this material without express and written permission from this site’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Genisys Credit Union and www.genisyscu.org with appropriate and specific direction to the original content.
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