Life insurance can be tricky to understand. Maybe that’s why many people don’t bother indulging in figuring out its many technicalities, rules, and regulations. However, not all that is known is true about it. Naturally, to each, its own – many people have their own valid experiences with it.
People like to engage in discussions with peers, which leads to confusion and misconceptions as not everyone’s scenario is the same. Hence, we have compiled a list of myths about life insurance that might or might not be true.
So let’s find out and clear the air once and for all.
1. Life Insurance Is Only For the Deceased
One of the most commonly circulated Myths about Life Insurance has to be that it is only for the deceased. However, not only is it untrue, it is certainly costing you a lot while you retire and live through your retirement. In fact, the people who consider this myth true don’t account for the many other benefits that life insurance can provide apart from death benefits. You can always opt for permanent life insurance, enjoy the cash value component and borrow to build your wealth against it.
2. It Is For the Rich
Talking about permanent life insurance, the next most commonly spread Myths about Life Insurance has to be that life insurance is for the rich. At least permanent life insurance is definitely considered only for the wealthy. However, if you accompany your decision with a good financial advisor, they will help you decide how to work with your cash value component. After all, permanent life insurance is the only product that allows you to combine every tax favor benefit present in the tax code.
3. Life Insurance Is Not For Young & Healthy
The third myth on our list is that life insurance only belongs to old and unhealthy people. This means that if you are young and healthy, then life insurance isn’t for you. However, this couldn’t be far from the truth. Nobody can predict their future for sure. If you are healthy now, you may constrict a life-altering disease later in life or suffer through an accident. Without it, coverage against such critical ailments can become very difficult. Moreover, getting it as early as possible will cost you way more if you acquire it later in life.
4. You Don’t Need Life Insurance If You Are Single With No Dependents.
Another Myths about Life Insurance is many people believe that life insurance isn’t for me if I am on my own with no dependents to leave behind or take responsibility for. However, they fail to see that it is the best chance to leave behind a significant legacy for a charity or good cause that you believe in. For instance, many people go about their entire life trying to be vegan and green for the environment. This will allow you to leave your legacy behind to help this cause.
5. The Life Insurance My Work Allows Is Sufficient
Many employers offer term or group life insurance in equal parts to your salary for almost free of cost. However, the biggest drawback of going by the life insurance your employer provides is the moment you retire, resign, or are terminated – your life insurance also goes with it. So now, not only are you unemployed but you are also underinsured. This means that crucial necessities like debts, food, clothing, and mortgage would not be covered in the event of your untimely demise.
6. There Are So Many Life Insurance Plans To Choose From
It is understandable that there are many choices when it comes to life insurance. However, the myth about it that provokes people to not make a decision at all – is just plain wrong. You can always consider and prioritize your needs and wants and choose between a generic term and permanent life insurance for the time being before you upgrade for a specific one. In such a scenario, term life insurance is always a good choice as it is the least expensive and customizable.
7. Savings Will Be Enough, No Need of Life Insurance
Last and one of the most absurd Myths about Life Insurance has to be that people consider their savings will be enough for life after retirement, paying off debts, and taking care of funeral proceedings – instead of it. The naivety of the situation is what comes off as funny because:
- You can never predict your future
- You don’t know how long you will live
- You don’t know how and when you will die
Hence, when you can’t state any of these details for sure, choosing to live a mediocre life or living through an uncomfortable situation is not a choice anybody should make.
Conclusion
So these were some of the most rampant Myths about Life Insurance that burn the bridge for acquiring one for many people. However, we truly believe that life insurance is a personal choice based on your situation and ultimate goals.
Our people at United Insurance carry a deep respect for this. We know the impacts of choosing a life insurance policy, and our agents are happy to offer a consultation. Taking care of family is a priority here at United Insurance. There are many affordable options available to support your life plan.
So what are you waiting for? Contact us for more details to get started right away.