When it comes to insurance there are so many myths that have led consumers astray, and life insurance is no exception. In fact, for many people, life insurance is the most confusing road to navigate. But, because of the myths surrounding life insurance, many people decide to go without it—setting up their family for financial disaster in the event of an untimely death. As part of the National Agents Alliance team, it is the responsibility of our agents to keep our clients informed of the truths and falsehoods surrounding the products we can provide.
InsuranceNewsNet.com has dispelled the top five life insurance myths:
- Myth #1: There is no reason to buy life insurance when you’re young.
This couldn’t be further from the truth. Just because you’re young doesn’t mean that you wouldn’t leave a burden on your family if you suddenly died. If you buy a life insurance policy when you’re young and most likely healthy, the premiums are lower and it is usually easier to qualify for a policy. In addition, the coverage will remain in place no matter what happens with that person’s health down the line.
- Myth #2: No-medical exam life insurance is the best choice.
While this may be a great option for some, people who are in good health should consider a traditional policy. The health exam might take a little more time, but taking that time can mean qualifying for better policy rates. Traditional policies also offer more options in terms of policy length and coverage amounts, letting the buyer choose what they really need.
- Myth #3: Buyers need to choose between term and whole life insurance.
These are the two main types of life insurance offered to consumers, and some people have a hard time choosing between the two. But, many people don’t realize is that there is no need to choose. It’s often the wisest course to have one of each. A whole policy covers the long-term, and a term life insurance policy covers the period when a larger amount of coverage is needed.
- Myth #4: Life insurance is expensive.
Life insurance is much more affordable than many people believe. In fact, a recent report released by the LIFE Foundation and LIMRA, consumers inaccurately believe that life insurance costs nearly three times the actual price. A healthy 30-year-old consumer, who wants a 20-year, $250,000 term life policy can expect to pay only an average annual cost of $150.
- Myth #5: Life insurance isn’t available to senior citizens.
In the past it was much harder for senior citizens to obtain life insurance. But more companies are now offering coverage to senior citizens than ever before. It’s never too late.