Understanding life insurance and its benefits means that you need to learn about the facts and myths surrounding it. Once you understand what it is, you can then decide for yourself if it is fact or fiction, beneficial or a waste of money and effort. This will help you make the right choice for you and your family, as you secure future financial security. Sadly, there are still those who make excuses for not investing and shun the opportunity to get life insurance.
“I Do Not Need Life Insurance”
Unless you do not have children, have plenty of money to cover all your debts, medical expenses and funeral costs and do not feel the need to leave money to your family or spouse, then you might not need life insurance. However, there are people who already have begun to invest to ensure that they have available money for everything that needs to be paid in the future and for the family to be comfortable. If you do not have anyone relying on your income each day, but have a line of debts to settle, then you will need life insurance.
“I Am Still Young And Do Not Need Life Insurance”
Life insurance is not about what can happen to you while you are young and still working, but for your future and the worst case scenario. In fact, you will find that life insurance is very affordable while you are younger and healthy. When you invest in life insurance while you are still young, you will be able to provide financial security without having to invest a lot of money.
“I am Self Employed / Work From Home So I Do Not Need Life Insurance”
Think twice about this excuse because life insurance is still necessary even if you are self employed or if you work from home. Anything can happen to anyone at any time even inside the home and considering this possibility, the absence of either one parent can make the cost of housekeeping and childcare difficult.
“When My Children Can Support Themselves I Will Not Need Life Insurance”
Every life insurance policy varies from person to person as it is designed to meet the unique needs of every person. Even if your children will not need your support, think how your spouse will be able to manage daily living expenses and other expenses when you are gone. As a matter of fact “When you pass away, your life insurance provides income (tax-free) to your named beneficiary or beneficiaries that can be used to pay funeral expenses, debt, tuition, estate taxes, or virtually any financial need” says Advantage Insurance Agency.
“Since I Am A Smoker, I Will Not Be Able To Get Life Insurance”
This is a very common misconception. The only difference from the coverage a smoker will have is that the premiums will be slightly higher than that of a non-smoker’s premium. However, the difference is not as expensive as many people think. If you happen to quit smoking for a full year, there are life insurance providers that offer non smoker rates.
“My Employment Offers Life Insurance So I Do Not Need Life Insurance Again”
This life insurance is only available to you while you are employed and sadly, the coverage may not be sufficient enough to protect you and your family too. Check the amount your employer paid insurance offers and then calculate it to determine if it is enough to support your family through difficult times should you not be around anymore.
Valerie Stevens is a freelance writer specializing in various insurance and financial security topics.