Life Insurance Awareness Month is a great opportunity to inform consumers about the benefits of life insurance and dispel the myths.
In celebration of Life Insurance Awareness’ month, it’s time we separate the myths from the facts:
- Myth: Life insurance is expensive.
- Fact: Life insurance is much cheaper than widely believed. The 2012 Insurance Barometer Study revealed that 2,011 respondents between ages 18 and 75, estimated that annual coverage for a healthy 30-year-old was $400—a total of $250 more than the actual cost of life insurance.
- Myth: Life insurance is a luxury, not a necessity.
- Fact: Life insurance is as much as a necessity as health insurance. Should the main income provider or a parent die unexpectedly, that income would need to continue coming in so that the family can pay their bills and provide childcare.
- Myth: You only need enough life insurance to cover burial expenses.
- Fact: You not only need life insurance to cover any burial expenses, but you also need the continued income of the deceased person. If a stay-at-home parent dies unexpectedly, you’ll now need someone to care for the children, in which the average salary of a stay-at-home parent is about $75,000. You will also need to cover the bills for at least six months in order to help your family make it through the grieving process and make plans for their future income.
- Myth: Life insurance is only something you need to think about as you reach retirement.
- Fact: The earlier you begin thinking about purchasing life insurance the better. Death can occur at any moment, which is why now is the time to consider purchasing a policy. In addition, you can lock in lower premiums due to your age.
- Myth: I’m single, with no children. I don’t need life insurance.
- Fact: Just because you’re single with no dependents doesn’t mean you don’t need life insurance. Should you unexpectedly die who would cover your burial costs and pay off your debts? Don’t leave a burden on your family.
Don’t let the myths keep you from protecting your family and loved ones. Life insurance can offer that peace of mind that no matter what happens, your family will be taken care of after you are gone. And for the National Agents Alliance team members, be sure that your clients and potential clients are aware of these common myths, and their corresponding truths!