According to recent studies, life insurance ownership is on the decline. Nearly 56 percent of Americans don’t own coverage. Among those that do, 40 percent say they don’t have enough. In fact, LIMRA, an insurance industry organization, estimates that Americans as a group are underinsured by more than $15 trillion.1
You may believe that you don’t need coverage. However, if your death would cause financial difficulty for others, you likely need some level of protection. You may need insurance to provide for your spouse and children after your death. Perhaps you need a policy to protect your business partners. You might be required to own coverage to cover an outstanding loan.
Whatever your reason, there’s likely a policy out there that fits your goals and your budget. If you’ve been putting off life insurance, you may want to think about why. It’s possible that you’ve bought into false ideas. Below are a few common myths about life insurance and why you shouldn’t believe them:
Life insurance is too expensive.
The most common reason people don’t buy coverage is that they believe it’s too expensive. According to LIMRA, 83 percent of those who don’t have life insurance say they can’t afford it. In fact, a study found that most Americans believe life insurance costs more than double what it actually does.1
A term policy could help you fit life insurance into your budget. These policies provide protection for a limited amount of time, such as 10 or 20 years. Term policies are usually more affordable than their permanent counterparts. A financial professional can help you find the right policy for your budget.
I don’t need individual life insurance if I have it at work.
Many employers offer life insurance as part of a group benefit package. Some coverage may be free, while additional coverage could be affordable for a discounted cost. If you participate in your employer’s group life insurance plan, you may not feel that you need additional insurance.
While group life insurance is a helpful benefit, it doesn’t mean you don’t need your own protection. If you leave your employer, you’ll likely lose your insurance. If your health has declined, you may not be eligible to purchase insurance after leaving your job. Of course, you can avoid that risk by purchasing an individual life insurance policy today.
I’m young and healthy. I don’t need to worry about dying.
Life insurance provides protection against the financial fallout from your death. If you’re relatively young and healthy, you may not be concerned about passing away. While it’s possible at any age, there may not be a high likelihood of death for you.
However, the best time to buy life insurance is when you’re young and healthy. Life insurance premiums are based in large part on the probability of your death. The older and unhealthier you are when you purchase life insurance, the higher the premiums will be. You can save yourself significant money over the course of your life by purchasing life insurance at a young age.
Ready to find the right protection for your needs and budget? Let’s talk about it. Contact us today at Financial Solutions Group. We can help you analyze your needs and develop a plan. Let’s connect soon and start the conversation.
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
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