Life Insurance Myths: Get the Facts

6 Things People Believe about Life Insurance
Many people put off talking about life insurance because it’s a subject they don’t want to think about. There are also many misconceptions about the purpose of life insurance and what it is and isn’t.

Here we’re going to clear up some of the myths about life insurance.

  1. Life insurance is only for funeral expenses, and I don’t want a fancy funeral. First, funerals cost more than you realize. In addition to that, life insurance also helps to protect the finances of the loved ones you leave behind. It can be used to pay off a mortgage, unforeseen medical expenses, even help to pay for a child’s college education. There are countless expenses that life insurance can help with.
  2. I’m perfectly healthy. I don’t need to get life insurance. The fact is, it doesn’t matter how healthy you are. Accidents happen every day. If the unthinkable should happen, the last thing you want is for your family to be left with sudden expenses they can’t afford.
  3. I don’t want life insurance because my family can’t access the money unless I’m dead. That is only true if you have Term Life Insurance. It’s the cheapest type of insurance, but can only be accessed after someone dies. You could, however, choose Whole Life or Universal Life Insurance, which enables you to take out money whenever you need it. For example, if you have Whole Life Insurance, you’d be able to access a large amount of benefits for medical expenses if someone becomes gravely ill. You can use it for retirement costs and other types of expenses as well.
  4. Once I choose a type of life insurance, my circumstances may change, and I won’t be able to change it. It’s important to meet with insurance professionals, like the experts at Zawada Insurance Agency, because you may need to review your current policy. If your situation should change, and you’d prefer to go with another policy, it is possible for you to do that.
  5. I should just go with Term Life Insurance because it’s cheaper than the others. In fact, Term Life Insurance may be well suited for you. However, you should know that the premium increases each year, unlike Whole and Universal Life Insurance. Universal Life Insurance is also a low-cost option, and your premiums will be fixed. So there are other types of coverage to consider.
  6. Life insurance policies are too confusing. They don’t have to be, which is why it’s good to talk with professionals to help you understand all of your options. For instance, Term Life will give you a substantial benefit when someone dies. Whole Life acts like a savings account, giving you a tax-free account that will increase over time. Gains made can go toward your retirement or other important expenditures. Universal Life Insurance combines the best of both the other policies in terms of flexibility and cost. The premium remains the same throughout your life, with no sudden increase in payments. Each month, you’ll get interest on your policy, which can be used to pay your premium or other things.

At Zawada Insurance Agency, we’ll work with you to find the best, most affordable insurance coverage to fit you and your family’s needs.
Please contact Zawada Insurance Agency today. We’re a family-owned and operated independent insurance agency, located in Worcester, Massachusetts, serving central Massachusetts and beyond.

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