Most of us would do anything to protect the health, safety, and security of our loved ones. Having a life insurance policy in place can help you prepare for the unexpected and provide peace of mind. The topic of life insurance is often met with confusion and misinformation. Below are six of the most common misconceptions people have about life insurance:
Myth 1: Life insurance is not affordable
Fact: Life insurance rates can vary widely depending on factors like the type of coverage, age and health status. In most cases, the average person can find affordable life insurance.
Myth 2: Life insurance is unnecessary if I’m young and healthy
Fact: The best time to buy life insurance is when you’re young and healthy. You’ll likely lower premiums and lock in lower rates. You’ll also have a plan in place to cover events like burial expenses and debt in the event of unforeseen circumstances.
Myth 3: Life insurance coverage at work is enough
Fact: Employer-sponsored life insurance is a great benefit, but it usually only covers one or two times your salary. This may not be enough coverage, especially if you have dependents or others who rely on you for financial support.
Myth 4: Life insurance is unnecessary if I don’t have any dependents
Fact: Even if you don’t have children, you may have a spouse, sibling, or parent who relies on you for financial support. You may use your life insurance to create a larger legacy for your heirs. Insurance can also cover things like medical expenses or co-signed loans left to your next of kin.
Myth 5: I’m not the primary income earner, so I don’t need life insurance
Fact: Stay-at-home parents and part-time earners provide valuable services like running a household and caregiving. Supplementing or replacing these jobs due to a tragic event can be more expensive than you think.
Myth 6: I don’t qualify for affordable coverage based on my age or health
Fact: Advanced age and certain health conditions can make life insurance more expensive. However, there are many different policies available that make coverage affordable for almost everyone.
Keep in mind life insurance offers many benefits — including some that can be tapped while you’re still alive. Just about anyone can benefit from some form of life insurance and policies are available for every life stage and income.
To review your current and future life insurance needs, contact a Fifth Third Bank advisor.