Five Life Insurance Myths That Could Be Keeping You from the Coverage You Need
Any type of insurance can be complex and difficult to understand, but when you are in the beginning stages of starting your career or expanding your family, it’s likely that you won’t understand absolutely everything about your coverage. Part of the problem is that there are a lot of myths about life insurance that have people confused about how it really works and what their options are. Whether you plan to get life insurance soon, or you have already had it for a few years, you can always stand to learn more about how it works. The following are a few life insurance myths that have been de-bunked to show you the truth about what options you have.
Myth: Young People Don’t Need Life Insurance
Newlyweds and young parents don’t realize how vital it is that they have life insurance, because they think it doesn’t pertain to them. The younger you are, the lower your premiums are going to be. As you get older, the chances of developing medical conditions that can result in higher premiums. In addition, regardless of how young you may be, you still have a need for money to pay funeral expenses and any other unpaid debts you may leave behind in the case of your untimely death.
Myth: Life Insurance is only for the Head of the Household
If the head of household or breadwinner’s spouse dies, he or she may have to suddenly pay for daycare for many years, especially if the children are young. Insurance on the stay-at-home parent provides additional income so the breadwinner and his or her family can continue to live as they previously did. It’s been often said that the stay-at-home parent is extremely undervalued, which is probably why many people believe this myth. Even if the breadwinner is still alive, the absence of the other spouse could cause a financial void within the family, which is why it is best that both parents have life insurance.
Myth: The Only Life Insurance Available is Pricey
Life insurance, like most things, can vary in price. Premiums are generally based on life expectancy and life expectancies are longer than in the past so premiums are actually cheaper than in the past. With so many different types of policies available, it’s much easier to find an affordable policy that provides good coverage. Yes, this will be an extra expense to work into your budget, but it will give you comfort to know that your family will be provided for in the future in case of a tragedy.
Myth: Checking With Many Agents Will Get You the Best Deal
Getting life insurance is not like buying a car where the salespeople are competitive. While agents may compete for your business, it can get mighty confusing when you have all these policies in front of you and each agent giving different information. Find an agent that underwrites for many companies. Once they know what you need, they’re more likely to find a company that can offer you the type of policy you want and need. This eliminates the need to physically shop around with different agents—your information will be all in one place.
Myth: The Insurance I Get From Work Will Be Enough
The thing about employee-based life insurance is that it’s only valid while you’re an employee. How do you know you’ll always be working at this place? If you lose your job for whatever reason, there goes your life insurance. If this happens when you’re older, you’re going to pay a much higher premium to get life insurance than you would have paid when you were young. Depending on what type of coverage your company provides, it likely won’t be enough—especially if you don’t plan to stay there for long.
It can be tough to navigate through the confusing waters of life insurance, but the more accurate information you have, the easier it is to understand your coverage, and where you might be lacking. If you can form a personal relationship with your insurance agent, it will be much easier to get straightforward answers to any questions or concerns you might have. Do your own research when questions come up, and remember that you can always go straight to the source to de-bunk any myths and clear up any confusion. The information for this article was provided by the experts at Underwriters Insurance Brokers Ltd. who specialize in liability and life insurance in Vancouver.
Category: Life Insurance
