Myth 1: Family members who have no income from work does not need life insurance
If you are staying at home, and have no income from working, life insurance coverage for you is still necessary. Even though you may not pull in a proper income for the family, you probably deliver services which could be very expensive to replace in case you pass away. These types of services include babysitting, child care, day to day transport, home upkeep and food preparation, among other things. If you die, your life insurance quote will help take care of a few of these expenses, which can cost thousands of dollars to replace.
Myth 2: People who have a life insurance policy as a benefit in their job position does not need to get their own life insurance
Normally, your life insurance plan from your job is not transportable. This means that if you resign from your job or got laid off, you are most likely also leaving behind your life insurance policy. On the other hand, if you purchase your personal life insurance policy, you will choose how long you would like to be protected. Furthermore, with a personal life insurance policy, you might be capable of getting more customized insurance coverage that suits your financial necessities.
Myth 3: Life insurance plan is too expensive
Based on a Insurance Barometer study carried out by Life Happens back in 2015, 4 out of 5 people misjudge the price of term life insurance coverage. An insurance plan can be quite inexpensive for many individuals, based on the protection you are interested in. You can begin with an insurance policy best suited to your financial budget, and then obtain extra benefits in later years as you start to be able to afford them.
Myth 4: Life insurance coverage is not required once your kids grow up
Life insurance coverage will help you in most phases of your lifetime. Life insurance coverage as adults possesses a variety of benefits, like assisting to reduce the stress of spending money on final expenses, spending money on state real estate fees that your beneficiaries might deal with, settling any kind of financial debt you might have left out after you died, or simply to give out as inheritance to your offspring.
Myth 5: Life insurance plans are not needed if you have a lot of saved money.
Though your financial savings may persist during your retirement life, have you ever pondered about final expenses? Based on the statistics released by the National Funeral Directors Association, the nationalized average expense of a funeral service with a burial back in 2014 was $7,181. In case you do not have sufficient cash stored, it’s possible that your family will not have the ability to afford final expenditures. Bear in mind that if your home loan is still not paid, your remaining family members might not be in a position to keep paying your mortgage, which may lead to foreclosure.
Myth 6: It is not possible to convert from a life insurance policy type to another
You are able to change quite a few term life insurance plans in a long term life insurance plan, based on the plan you obtained. Nevertheless, it’s wise to talk to your insurance agent in the beginning, because these types of term insurance policies usually should be switched in a given point in time.