| Having life
insurance means you and your family have the security
knowing you can reach the long-term financial goals
you have set out.
There are many myths surrounding term life insurance.
It’s hard to know when you should buy it, why
you should buy it, and how. Ending up with too little
coverage could mean financial hardship for your family
if anything should ever happen to you.
The following are common myths that you may have heard
about life insurance. Read through them in order to
avoid making a huge mistake involving your life insurance.
It's too much of a hassle to get life insurance: Thanks
to the Internet, getting quotes is fast and easy. There
are a number of online life insurance quote services
and usually, all you have to do is answer a few simple
questions to get quotes. Sometimes, you can even buy
a policy online.
I have life insurance through my job. I don't need any
more insurance coverage: The truth is your life insurance
coverage through your work may not be protecting yourself
and your loved ones as much as you think. Review how
much your employer-paid insurance provides and calculate
whether this is enough to keep your family comfortable
through the difficult times if you're not around. When
you leave your job for any reason, including retirement,
your coverage usually stops.
If you don't work outside the home you don't need life
insurance: Just because there's no paycheck to replace,
doesn't mean life insurance is unnecessary. A life insurance
policy that provides coverage for a stay-at-home parent
isn’t so much about the money they bring in to
the household, but instead about the money they keep
in the household. This includes childcare and housekeeping
costs.
If you’re still young, you won't need life insurance:
Although it is unlikely you'll die during your working
years, you're not insuring for what's likely to happen
but instead, for the worst-case scenario. That's why
term life insurance is inexpensive for young, healthy
people. Buying life insurance now means you'll be providing
financial security without spending a lot of money for
it.
You may even be eligible for preferred life rates that
mean the annual premiums are even less! Preferred rates
are lower premiums offered by an insurer based on your
health. The good news is that eligibility for preferred
rates is common and could save you up to 30% off the
standard rate.
If your insurance is really cheap there must be a catch:
There's no catch to term life insurance. Your basic
term life insurance policy will offer you coverage so
long as you pay your premium. You buy term insurance
coverage for the duration of time you'll need life insurance,
whether that's until the kids are out of school or until
your mortgage is paid off. Your premiums are fixed for
the length of the term. They won't increase even if
the status of your health changes.
Once my children are self-supporting and my mortgage
is paid off I won’t need life insurance: Even
if your children are no longer living at home and you
no longer have large debts, like a mortgage, there still
are questions you should consider before deciding that
life insurance is unneeded. How would your spouse manage
daily living expenses without your help? What if your
spouse outlived you by 10 or even 20 years?
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