September isLife Insurance Awareness Month.
To kick things off, we’ve decided to examine (and debunk) 5 common misconceptions about life insurance:
Myth 1: I'm Too Young to Need Life Insurance
FACT: It’s never too soon to purchase life insurance. Almost half of adults age 25-44 are concerned with leaving dependents in a difficult financial situation if they were to die unexpectedly. Life insurance can provide valuable security and peace of mind for your loved ones, and you’ll save money on your premium if you buy a policy when you’re young.
Myth 2: Life Insurance is Too Expensive
There are countless options for life insurance, and your insurance broker can help you find a policy that meets your needs and your budget. Term life insurance can be especially affordable, with some monthly premiums costing less than a pair of movie tickets.
Myth 3: I’m a Stay-at-Home Parent with No Income. I Don’t Need Life Insurance
While you may not bring in an actual paycheck, you do provide invaluable services that would cost thousands of dollars to replace, including—but not limited to—childcare, housekeeping, transportation, and general maintenance.
Life Insurance can help to ease the financial burden on your family, allowing them time to grieve without having to worry about the bills if you should pass away. Your life insurance policy can be used to pay off any outstanding debts, to provide a stream of income for your loved ones to live on, and even to pre-fund your child’s college education.
Myth 4: I Have Money in Savings, so I Don’t Need Life Insurance
According to some financial planners, you should have enough insurance coverage to replace 5-7 years of your salary – 10 years, if you have kids or a significant amount of debt. Even if you do have that much saved in the bank, your loved ones could be hit with an estate-tax payment of up to 45%, and your accounts may be temporarily frozen upon your death. Life insurance can help to guard your family against unnecessary financial hardship and stress.
Myth 5: I’m Too Old to Qualify for Life Insurance.
Many companies provide life insurance policies to seniors at affordable rates. If you’ve lost work-related coverage because you retired, or if you’re interested in examining your options for life insurance, contact your local broker.
Buying life insurance may seem daunting, but it doesn’t need to be. We’re here to help.Contact us to schedule a consultation, and keep an eye right here for more life insurance facts and tips throughout the month of September!