Common Myths about Life Insurance

Many people feel like they don’t need to get life insurance for various reasons. However, not getting life could be devastating to your loved ones’ well being. There are many common myths about life insurance that can negatively affect you and your family, and they include the following: 

  • You Only Need Life Insurance Provided by Your Employer.

Many times getting employer-offered life insurance is more expensive than it will be when consulting a reliable insurance agent. Also, if you don’t stay at the job, you will lose your benefits and paid premiums whereas your premiums could’ve been locked in and possibly build cash value over time, depending on the type of life insurance you have.  

  • Life Insurance is Needed Only by the Breadwinner. 

If something happens to your spouse that stays at home, you may need that extra income to hire someone to care for your children and clean your home while you are at work. Also, you may need that extra income if your spouse made extra income to help your family while she/he was still living.  

  • Life Insurance is Very Costly. 

A recent study by LIMRA and Life Happens stated that 25% of consumers think that life insurance is $1,000 annually for a term policy for a healthy 30-year old person for a policy level of a 20-year term and $250,000. However,  these policies typically cost approximately $150. 

  • I Disqualify From Life Insurance Due to my Health.  

A list of health conditions is accepted in many cases, and there are some that specialize in high-risk cases. 

  • Every Person Should Purchase Term Life Insurance and Invest the Rest. 

This is sensible for most people, but you may be able to get a better deal by having life insurance for your whole life. Having permanent life insurance may be a better deal, for example, to assist with covering estate taxes or for a special needs child. 

  • Purchasing Life Insurance on the Internet is More Affordable. 

Many times, having a top-notch agent with tons of experience is best due to this professional knowing the ins and outs of life insurance. So, he/she will take you step-by-step to ensure the best coverage for you. 

  • I’m too young to be Concerned About Life Insurance.

This is not true for various reasons.  For one, young and old people die, so it is best to financially prepare in case you or your spouse passes away. Secondly, premiums tend to cost less when you are younger than when you get older when more medical issues tend to occur, and when you tend to have more assets. 

  • It’s Important to Always Buy the Return-of-Premium (ROP) Rider on any Term Life Policy. 

Different return-of-premium (ROP) levels are usually available for policies providing this feature. However, this feature is great depending on possible investment objectives and on your risk tolerance. In fact, many financial planners state that this rider should be avoided and is not cost-effective.

Conclusion

For more information about life insurance and to ensure you get the right coverage for you and your family, contact StateChoice today. Located in West Hartford, CT, StateChoice has been serving West Hartford, CT and surrounding areas for over 15 years now. You will be in good hands, so contact them today!