3 Myths of Life Insurance

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Jul 21, 2015

 

A recent study reported that more than 95 million adult Americans do not own life insurance at all, and those who do have life insurance don’t have enough. While the most common reason for lack of insurance is the fact that many people have competing financial priorities, many Americans assume they simply can’t afford life insurance whatsoever.

This common misconception is putting nearly 40% of our population at great financial risk – leaving them just one accident or illness away from fiscal catastrophe for their loved ones.

What most people don’t realize, however, is that there are many common myths about life insurance that are preventing a large portion of our population from properly protecting and investing in their lives. Here are three frequently believed misconceptions about the reality of life insurance.

1.     My job takes care of my life insurance with my normal policy

Though many jobs do offer a life insurance policy as a benefit, the second you leave that job your coverage will be dropped. In order to prevent going through a roller coaster ride of life insurance coverage, it’s a good idea to find a policy that will stay with you no matter where you work or what you do.

2.     Life insurance is simply too expensive

According to a study conducted by LIMRA, more than 85% of participants claimed life insurance was too expensive. In fact, life insurance has never been cheaper. In the last 16 years, the price of life insurance has dropped over 60%, allowing many people to get more than enough coverage for an affordable price.

3.     Your health or lifestyle choices will prevent you from getting coverage

While lifestyle choices do affect your premium costs, this doesn’t deter insurance companies from offering you life insurance. Those who live healthy, low-risk lifestyles will pay lower premiums than risk-takers or individuals who frequently encounter health problems.

When it’s all said and done, life insurance provides responsible financial coverage for your loved ones in the event of your illness or death. Though there are many common misunderstandings about life insurance, it’s important to realize that, without including life insurance in your budget, you’ll put all of your valuable assets at risk.

To learn more about life insurance or to request a free quote on your insurance policy, visit Insurance Center Associates today.

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