Life Insurance Myths Get the Facts & Protect What Matters Most: Part 1
September is Life Insurance Awareness Month. We are writing simple posts to debunk some of the myths people may have about life insurance. Also, you can ask questions about your situation.
We’ll do anything to protect our loved ones, right? But, far too often, most people don’t have life insurance, or if they do, they do not have enough. Their reason for not having life insurance varies: confusion about the different types of insurance available, the amount necessary and the associated cost. This leaves many depending on friends, loved ones, and co-workers to decide what protection is needed. Unfortunately, most of the information we receive is not correct.
Let us help you banish myths about life insurance and give you facts that may change your perspective and give you information for protecting your loved ones.
Myth 1: I’m single, or married with no children, so I don’t need life insurance.
Fact: Life insurance can help you cover your debts as well as help you provide for your loved ones in the event of death, even for those without children.
If you are in this group, you may carry debts that you prefer were taken care of rather than taken out of assets left to your loved ones. Still, others may use life insurance benefits to help nieces, nephews, cousins or siblings achieve their financial goals. For a modest premium, life insurance can help to provide for those who are left behind.
Myth 2: I can’t afford life insurance.
Fact: Term life insurance, which is life insurance purchased for a period of time, is very affordable for many people. For example, if you are a healthy, non-smoking, 35-year-old female who has a good family health history, you may be able to purchase a policy for less than a pizza per month.
Myth 3: I’m a stay-at-home parent. I draw no income. I don’t need life insurance.
Fact: If you’re a stay-at-home parent, you may not provide an actual paycheck for the household, but you do provide services that would cost tens of thousands of dollars to replace. These include: the cost of day care, a chauffeur or taxi service, a cook and a home cleaning service to name a few. If you have an individual life insurance policy, this may help to ease the burden for the loved ones if you should pass away.
Stay tuned to part 2 of this three part series on debunking the myths of life insurance.