To help you make an informed decision, we present 6 common life insurance myths – along with the factual information that debunks these misconceptions.
Myth #1: I am too young to need life insurance.
Even young, single individuals need life insurance to cover their financial obligations, such as personal debts, medical, and funeral bills; otherwise, a family member may be responsible for paying these expenses. You can lock in lower life insurance rates, begin preparing for the family you will someday have, and start building towards a financially secure retirement. Life insurance also gives young individuals the chance to make a significant financial contribution to their favorite charity or cause.
Myth #2: I am too old to need life insurance.
You may think there is no need for life insurance after you reach retirement age because your family is grown and you have sufficient funds to enjoy a comfortable retirement. Actually, purchasing life insurance after 60 provides a variety of potentially necessary benefits, allowing you to help protect your assets, clear any accumulated debts and tax burdens, and possibly leave a generous tax-free legacy for your loved ones or favorite charity while enjoying your retirement to the fullest.
Myth #3: Only the breadwinner needs life insurance.
Coverage for spouses who do not work outside of the home is often overlooked, but their loss causes considerable financial repercussions for the remaining family member. When you perform a needs-based cost-replacement analysis of the many services your homemaker partner provides, including childcare and chef duties, cleaning services, driver and more, the need to purchase life insurance coverage becomes clearer.
Myth #4: My employer-provided life insurance is all I need.
Employer-provided life insurance is temporary coverage that is only in force while you remain with your employer. No matter how secure your position seems, the instability of the modern workplace, where corporations are downsizing without notice, could leave you with no job and no life insurance coverage at any time. In addition, employer-provided life insurance is generally only for one to two times your annual salary, a significantly insufficient amount if you have a family that will rely on your life insurance for their well-being.
Myth #5: It is better to invest my money than purchase life insurance.
Given the volatility of the market, counting on investments to provide for the financial well being of your family in your absence is a risky proposition. Purchasing sufficient life insurance can allow you to cover the cost of clearing your debts, provide for your family’s well-being, and help ensure that they have the needed funds to live comfortably regardless of downswings in the financial market.
Myth #6: Life insurance is very expensive.
Life insurance plans are actually surprisingly affordable. According to a recent study reported by Forbes, 80% of respondents overestimated the cost of life insurance – often by hundreds of dollars. The experienced insurance specialists at MHG can assess your life insurance needs and put together an affordable life insurance package that combines term and whole life insurance policies to provide the coverage you need.
Contact MHG Insurance Brokers for more information about life insurance and other important insurance policies that are available by calling 954-828-1819, or visiting online at mhginsurance.com. Learn how you can protect your financial future and provide for the needs of your loved ones.