Preparing for the future usually involves saving for your children’s education or for retirement. You may not have considered life insurance due to misconceptions regarding cost or other issues. Instead of letting false information influence buying this essential life-planning tool, take a moment to get the facts.
Life Insurance and You – What Are the Facts?
Life insurance is put in place to provide financial support to the people you love should you suddenly pass away. Some policies build up value over time and as the years pass, and can be borrowed against, covering a policyholder for a lifetime. Life insurance policies vary in how they work, how much they cost, how the benefits they pay out, and when benefits are paid. Check out the common misconceptions you may have heard about life insurance, so you make an informed decision.
Misconception: Life insurance only pays out at death.
People have a longer life expectancy than in the past. Living well into your 80s and 90s is now a genuine possibility. Life insurance can make it possible to lead a financially independent life. Your life insurance policy is a valuable asset you can borrow against to help support you in your golden years. Some policies allow the policyholder to be covered if disabled. A life insurance policy can be customized with a “rider” that provides for an “accelerated death benefit” to help pay for the cost of care for a chronic or terminal illness.
Misconception: You do not need life insurance if you are single, young, and healthy.
Life insurance may sound like an unnecessary expense when you are single, young, and healthy. In fact, the best time to purchase life insurance is when you are young and healthy, as the premiums are lower, and you can lock in a reasonable rate. A younger person can also invest in a whole life policy, which covers you for a lifetime, and builds equity you can borrow against in the future – it’s a win-win.
Misconception: Life insurance is pricey.
Life insurance can be very affordable. Term life policies have lower premiums, providing coverage for a set number of years, generally up to 30, and with time, as your income increases, can often be converted to a whole life policy that builds equity. The cost depends on numerous factors and can be adjusted according to your spending power. Generally, the younger you are when you purchase a policy, the lower the monthly premiums.
Misconception: You do not need life insurance if you are covered through your employer.
Many employers offer life insurance to employees. Keep in mind that you are only covered as long as you are with the company. Even if you remain with one employer for many years, your policy will end at your retirement or when you find employment elsewhere. Instead of relying solely on your company’s policy, you should find additional coverage for guaranteed protection.
Misconception: Policies must be in the name of the purchaser.
Life insurance could be purchased by anyone who is not a minor and has a regular income source. That means you can buy life insurance policies to cover you, your spouse, or your children. In addition, business owners can purchase life insurance policies for key employees, owners, or partners, with the business named as the beneficiary.
Our Local Agents Are Here to Help.
Life insurance is among the best investments for your business or family. The death benefit is not subject to taxes and provides the beneficiaries with the support they need to pay a home mortgage, regular bills, and the cost of educating children. For assistance in choosing the right policy to suit your budget, our local agents are here to help.
Dedicated to Finding You the Best Coverage Possible!