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 loans; provide steady income for a period of time; fund college tuition and more. However, according to LIMRA, only six in 10 Americans own life insurance*.
In a continued effort to promote the importance of Life Insurance awareness, SEIU Member Benefits would like to help debunk six common myths about life insurance coverage:
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.
2. 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.
3. You don’t need more coverage than your employer provides. Employers may provide a great free or low-cost life insurance benefit. However, these policies may not provide enough coverage to help protect your loved ones.
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 legacy by helping to ensure you don’t leave a financial burden for your loved ones.
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 carries 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 National Education Association, can help make coverage more affordable.
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.
Keep in mind that all insurance is not alike. A financially sound company will more likely be there to pay claims when needed.
* Source: http://www.limra.com/uploadedFiles/limra.com/LIMRA_Root/Posts/PR/LIAM/PDF/Facts-of-Life_2017(1).pdf, LIMRA website, 2017