Most of us don’t even want to think about life insurance. We believe that because we are young or in good health that it’s not something we need to worry about. The truth is that it’s our responsibility to make sure we are properly covered in case something happens to us. But with so many myths surrounding life insurance, the buying process can get very confusing. That’s why we’ve taken the top 5 life insurance myths and offered some sound insurance advice. Let’s get started!
Myth 1: The life insurance coverage I receive through my job is enough.
This is sometimes the case, but not always. Additional coverage may be necessary, especially if you have dependents. It’s also important to remember that if and when you leave that company, the coverage will end.
Myth 2: My life insurance coverage should only be twice my annual salary.
The amount of life insurance each person needs depends on each person’s specific situation. In addition to medical and funeral bills, you may need to pay off debts such as your mortgage and provide for your family for several years.
Myth 3: I don’t have dependents, so I don’t need coverage.
You should have life insurance to cover the costs of personal debts, medical and funeral bills. Plus, you may have dependents in the future so it’s wise to purchase when you are young and the costs are lower.
Myth 4: You should always buy term life insurance.
Many people are told that term life insurance is best, but term coverage eventually runs out. It’s also important to note that premiums increase over time with a term life insurance policy, whereas they never increase with whole life.
Myth 5: You don’t need to worry about your life insurance policy after you purchase it.
Don’t simply buy a life insurance policy and then forget about it. A regular review of your life insurance will help you determine whether you have the right policy and adequate coverage.