Life Insurance Myths

Life Insurance—Myth Versus Fact

There is a lot of misinformation and outright myth when it comes to life insurance. Unfortunately, many people who would benefit from obtaining an affordable life insurance policy delay or avoid the issue simply because they don't know the facts. Here are some of the most common myths and misconceptions about life insurance.

  • Myth: Life insurance is expensive.
  • Fact: Life insurance is one of the most affordable types of insurance available. Depending upon your age, amount of coverage and duration term, life insurance can cost less than $20 per month!
     
  • Myth: I'm young so I don't need life insurance.
  • Fact: Young people are more likely to have small children, big mortgages and little savings—setting themselves up for financial disaster in the event of a loss.
     
  • Myth: I'm single without children so I don't need life insurance.
  • Fact: Even if you aren't married, obtaining life insurance when you are young allows you to plan for the future and lock-in the best possible rates.
     
  • Myth: I stay home with the children while my partner works so I don't need life insurance.
  • Fact: Child care, transportation, schooling and house care costs have sky-rocketed. replacing what you contribute to the household could prove to be a huge financial burden on the entire family. Calculate how much it would cost to maintain the same standard of living when purchasing family life insurance.
     
  • Myth: My home is paid in full and we both receive retirement or Social Security so we don't need life insurance.
  • Fact: The cost of medical care, assisted living and other care has increased tremendously. Your spouse or partner may not be able to care for themselves in the future, especially without your help. Life insurance can help offset the cost of assistive living, household chores and in-home care for your spouse or other dependents.

The above-listed tips are for informational use only. Refer to your insurance policy contract for specific information regarding your coverages and for actual terms, conditions and exclusions. The above statements are general in nature and may or may not reflect the actual terms of your insurance policy.