Here are 4 life insurance myths debunked.
1)Your employer-provided life insurance is all you need.
Your employer may provide you with life insurance equal to 1-2 times your annual salary and you may even be able to purchase up to 4-6 times your salary. However your “salary” doesn’t typically include commissions, bonuses, and second incomes. This means that the policy may not be enough to cover your family’s needs. Even if you do have enough insurance through your job, you may lose it when you leave. You may be able to convert your optional insurance to an individual policy or purchase one on your own but either way, it may be much more expensive than purchasing a policy today, especially if your health deteriorates.
2) Only the breadwinner needs life insurance.
Imagine if something were to happen to the stay-at-home spouse in your family. The breadwinner may need to hire someone to clean and take care of the kids and that can cost a lot of money. Unless your family would have that extra income to spare, you may need life insurance on both spouses. Life Happens. Insurance on the stay-at-home spouse also gives the working parent the opportunity to take time off work and help the family adjust to their loss.
3) My health disqualifies me from life insurance.
There are a lot of policies that cover a range of health conditions and some even specialize in high-risk cases. You can also purchase a policy that is not medically underwritten at all. Just be aware that they tend to be more expensive and have lower coverage limits.
4)You get a better deal purchasing life insurance online.
The Internet can be a great place to research life insurance and find an agent but you actually pay the same price whether you purchase a policy online or through a human being. What you don’t get online is the personal service that can help you figure out how much you need, which company is likely to give you the best price based on your health situation, and what the terms on the application mean. A web site may not realize that you need coverage for your whole life due to a child with special needs or that your health won’t qualify you for the rates offered by the lowest price company.