Life insurance is a necessity. Whether you want to believe it or not, it’s the truth. However, there are several myths and misconceptions about life insurance and the industry as a whole that I would like to dispel.
I don’t need life insurance
Wrong. You do. If you have a family or anybody that depends on you and your income, then you absolutely need life insurance. For example, if you have a child who relies on you to provide for him or her, and you were to suddenly pass away, your child would not inherit anything after your passing unless you have a life insurance policy. Purchasing a policy completely avoids this issue.
I don’t have any dependents so I don’t need life insurance
Again, wrong. At first glance it may seem as though the need for life insurance is voided if you do not have any dependents, but that couldn’t be further from the truth. Let’s say you have outstanding debt either in the form of a student, house or car loan or even credit card debt and you unexpectedly passed away, that debt could, and most likely would, fall on your family. That means your parents or siblings could receive your debt, which is incredibly unfair to them. A life insurance policy can take care of situations such as these.
It’s too expensive
Again, this is another myth that seems to be all too true at first, but once you dig deeper, you find that it is pretty inaccurate. Life insurance is actually relatively inexpensive. That isn’t to say that everybody can afford a policy on top of their other bills and expenses. I understand that not everybody earns large paychecks. However, in a study conducted by Life Happens and LIMRA revealed that 80% of those surveyed over calculated the cost of life insurance at $1,000 a year. In reality, it only cost about $150. Again, I understand that not everybody can even afford that, but it is far cheaper than most believe.
I’m too young to worry about that now
This actually ties back in with the last myth. Most people believe that life insurance is an “old person’s” concern. However, in reality, purchasing life insurance when you are younger is smarter because it tends to be less expensive.
These are only a handful of myths surrounding the industry. There are far more out there, but these tend to be the most popular ones. Make sure to at least look into purchasing a policy as soon as possible.