Life Insurance Myths
- Life Insurance is too expensive
Life insurance may be expensive, but it will only get more expensive. Life insurance is generally cheaper for younger, healthier individuals. I know it may be hard to find a spot in the budget for life insurance, but sometimes it is necessary. This leads to my next point.
- You don’t need life insurance if you are young
Life insurance is an important part of financial planning. While not everyone may need it, it is good to know your options. Life insurance is not solely about death benefits, there are several plans that offer cash value that comes with life insurance. Plus, if you are young and healthy, the cost of life insurance is going to go down.
- You don’t need life insurance if you are single with no kids
Even if you are single, you still may need life insurance. You could leave behind debt such as a car loan or a mortgage that might be passed to your parents or other family members.
- I have company life insurance; I don’t need any more.
While your company may provide life insurance while you work there, that policy will be stopped should you leave or retire. Plus, the company could go through hardship and cancel the policy at any time. Employer insurance may not be enough to cover the needs and expenses of you and your family. Company insurance is a fantastic starting point and a great benefit to look for, but you might need something to supplement that.
- I am not eligible for life insurance due to my age or health.
When talking about life insurance, we need to realize how it is evaluated and priced. Of course, a younger, healthier person is going to be able to get cheaper life insurance based on how it is priced. However, in the case of a term policy, the price of life insurance makes assumptions based on age and health. If age and health are concerns, they may have to price the insurance policy higher, but that doesn’t mean it won’t be available.
Remember, a holistic financial plan covers several things. We want to make sure you have enough money to take care of yourself and your family. Life insurance is a part of that and it is a conversation worth having.