Believing these misconceptions can lead to regret.
- Life insurance is a very important purchase.
- Many people fall for myths that prevent them from covering up.
- Contrary to popular belief, life insurance can be affordable, and you don’t need perfect health to purchase coverage.
Life insurance is one of the most important purchases a person can make. But unfortunately, some people are held back from getting the policy they need because they fall for some common misconceptions. To avoid this, it’s important to learn the realities surrounding these four big life insurance myths.
Myth no. 1: You don’t need insurance if you have no dependents
One of the biggest misconceptions about life insurance is that it is only important to purchase coverage in circumstances where there are dependents who rely on the potential policyholder’s income.
Here’s the reality: Many people end up with someone depending on them to provide income or services. This could be a spouse, children or elderly parents. And a person who waits until they have dependents may find themselves developing a pre-existing condition forward they get coverage that ends up making it much more difficult to get an affordable policy.
This is why young people should buy insurance when they are still young and healthy even if no one needs it. By getting coverage early, they can protect their loved ones in the future.
And even those who never end up with dependents may still want to have a policy to ensure that their funeral can be paid for without others having to face the financial burden of their final expenses.
Myth no. 2: Insurance is expensive
Another big misconception is that life insurance is expensive. In reality, it is usually very affordable to buy a term life insurance policy. This is especially true if purchased at a younger age, but even seniors can still be covered for a reasonable amount — especially after shopping around for coverage.
Further, while it may seem expensive to pay the premiums, a policy can provide peace of mind and save surviving loved ones from financial disaster in the event of an untimely death, so it is usually worth paying.
Myth no. 3: Term policies are a waste of money
A big reason many people don’t get coverage is because they have the mistaken belief that term life policies are a waste of money. This misconception stems from the fact that the policy will pay out only if death occurs during the coverage period. It may seem like a waste to have paid premiums for 20 or 30 years, but in the end no death benefit will be paid.
These premiums are not a loss, however. They protect against the risk of an untimely death that can financially devastate surviving loved ones. The best-case scenario is that the coverage won’t end up being needed — just like the best-case scenario for auto insurance is that no car accidents ever happen. But it’s still important to have coverage in place in case something goes wrong.
Myth no. 4: You need perfect health to cover
Finally, one last myth that prevents people from buying life insurance is the mistaken belief that only those in perfect health can get a policy. The reality is that almost everyone can find some type of coverage even if it’s just a guaranteed issues policy.
Instead of falling for these myths, shop around for life insurance and investigate all available options to make sure misunderstandings don’t get in the way of important protection for loved ones.
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