The Top 7 Myths about Life Insurance

The Top 7 Myths about Life Insurance

Do You Know the Facts?

Life insurance is necessary to protect your loved ones in the event that something unexpected should happen. But many consumers don’t understand the details about life insurance that could save them money. Here are the top 7 myths about life insurance:

  1. Your family will only receive life insurance payments when you die.

Whole Life and Universal Life Insurance allow you to access benefits even while you’re still living. This can help with retirement income or costs associated with a serious illness. Both types of coverage include a savings component that can be really helpful—and you don’t have to wait until someone dies.

  1. Term Life Insurance is the cheapest option.

Not necessarily. While it is the least expensive of the three basic options—Term Life, Whole Life, and Universal Life—the premiums will increase each year. So in the long run, this could be an expensive type of coverage. That’s why it’s good to research and understand all of your options.

  1. If you’re young and healthy, you don’t need life insurance.

Actually, the opposite is true. When you’re young and healthy is the BEST time to get it! That’s because you can get coverage for a much better rate than when you’re over age 50, when health issues are more likely to develop. If you purchased it when you were young, by the time you’re older and in need of more medical care, you will have it at a rate that you wouldn’t have been able to get later on.

  1. Getting life insurance from your employer is all you need.

In order to have enough income for your dependents, it’s recommended that you have at least five to eight times your annual salary. As the cost of living increases, some even say you should have 10 to 12 times as much! And the coverage you receive from an employer typically only gives you one to two times your salary. Not only is this not enough, but you could lose it if you switch jobs. Often you can find more affordable coverage that won’t be affected should you change jobs.

  1. Life insurance is too expensive.

This is one of the biggest misconceptions about life insurance. According to a study done by Life Happens, about 80 percent of people overestimated the true annual cost of life insurance. For example, a 20-year, $250,000 Term Life Insurance policy for a healthy 30-year-old actually costs $160 a year.

  1. Since life insurance is all about providing for beneficiaries, a single person doesn’t need it.

For a single person, life insurance is still an important part of a smart financial plan. That person may want to leave something to help take care of aging parents or close friends. That person may also decide to have kids someday, and want to leave something for them.

  1. If my health isn’t good, I’m automatically disqualified from getting life insurance.

This isn’t true. Your policy may be a bit more expensive, but there is still a variety of options available to you. In fact, some companies specialize in cases that may be considered “high risk.” So it’s important to do your homework and find out what’s out there.

Remember to talk with professionals who can advise you on the best policies to suit your life and your financial situation.

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.