Chances are, you understand the value of life insurance. In the event a loved one dies, coverage can help pay off final expenses, debts and student loans; provide steady income for a period of time; fund college tuition and more. However, according to LIMRA, close to half (48%) of U.S. adult consumers do not own life insurance.*
In a continued effort to promote the importance of life insurance awareness, SEIU Member Benefits would like to help debunk seven common myths about life insurance coverage:
Myth #1: Only breadwinners need life insurance
If you’re not the main wage earner in your family, you might think you don’t need coverage. Think again. Even if you’re not the breadwinner, you still earn valuable income or provide services to the household. Stay-at-home parents perform tasks that will either need to be supplemented or replaced. The breadwinner might also need to work less or take a different job while the family adjusts to a one-parent household.
Myth #2: It doesn’t matter what type of job you have when choosing life insurance
This couldn’t be further from the truth. Certain jobs come with unique risks that need to be factored in when selecting life insurance coverage. For example, service workers such as healthcare professionals or first responders may face occupational hazards like illness, injury, or exposure to dangerous environments. These risks make it crucial to have coverage tailored to your profession to ensure your family is fully protected.
Myth #3: You don’t need more coverage than your employer provides
Employers may provide a great free or lower-cost life insurance benefit. However, these policies may not provide enough coverage for many situations.
Myth #4: I don’t need life insurance if I don’t have dependents
Upon passing, funeral expenses, medical bills and debts are transferred to the next of kin. Having coverage will help protect your loved ones by helping to ensure you don’t leave a financial burden for your loved ones.
Myth #5: Life insurance is expensive
Many people overestimate the cost of life insurance. When you’re researching what kind of policy to purchase, think about why you need the coverage and what the money would replace. Depending on your answers, a lower-cost plan that provides minimum coverage might be ideal for you. Make sure you compare quotes to ensure you’re getting the best deal. Know that the buying power of large groups, like the SEIU, can help make coverage more affordable.
Myth #6: I’m healthy. I don’t need life insurance
The best time to buy life insurance is when you are young and healthy. Premiums only increase as you age and have more health problems. And even if you are healthy, you never know when the unexpected, such as a car crash, can happen.
Myth #7: Investing my money is a smarter move than buying life insurance
If you have a million dollars in liquid assets, then you might not need life insurance; however, relying solely on your investments can be risky, especially if you have children or a spouse who depend on your income.
Keep in mind that all insurance is not alike. It’s important to consider the financial stability of your insurance carrier before you purchase coverage because your insurer will have an ongoing financial obligation to you. You can click here to view the insurance programs offered by SEIU Member Benefits and learn more about this coverage designed with SEIU members and their families in mind.
Want to see if SEIU’s Group Term Life Insurance is right for you?
* Findings from the 2023 Insurance Barometer Study. https://www.limra.com/en/newsroom/news-releases/2023/new-study-shows-interest-in-life-insurance-at-all-time-high-in-2023/
SEIU Group Term Life Insurance coverage is issued by The Prudential Insurance Company of America, Newark, NJ. CA COA #1179, NAIC #68241.
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