Many people believe that life insurance is a waste of money. They think it’s just something they have to buy in order to qualify for another type of coverage or because their loved ones will be left with nothing if the worst happens. This couldn’t be further from the truth!
The purpose of life insurance isn’t to make your family rich, but rather to help them pay off any debt you may incur after you pass away and maintain the same lifestyle they were accustomed to while you were alive.
In this blog post, we’ll debunk some myths about life insurance so that you can understand how it can benefit your loved ones when they need it most!
Life Insurance Is Expensive
Life insurance is not expensive. An average of $20 per month can provide a family with up to $250,000 in death benefits for a total cost of just over $300 annually. Life insurance coverage begins now and lasts through the life-time of the policyholder so it only needs to be purchased once! The monthly premiums are paid into an account from which benefits are paid when the policyholder dies.
You Can’t Get Life Insurance if You Have a Pre-Existing Condition
This is also not true. Having a pre-existing condition does not prevent you from having life insurance. If you have a condition that could shorten your lifespan, it can affect the type of policy and premium you’ll be offered but this is true for any kind of risk assessment an insurer does before issuing a new group or individual coverage contract.
As long as you have a pre-existing condition that is not considered terminal, like diabetes or high blood pressure, it’s unlikely to severely affect your life insurance rates because these conditions are common and generally do not shorten a person’s lifespan significantly.
Life Insurance only Benefits Your Family
Your family isn’t the only one that can benefit from life insurance. With life insurance, you can cover the cost of paying off debt as well as providing a financial cushion for loved ones after you’ve gone. For example, if someone has $70k in outstanding mortgage loans and up to $50k in credit card debt with no will or trust in place, his or her family will be left with a mountain of debt. This can be avoided by making sure your life insurance policy is large enough to cover this amount.
You Need to be Wealthy in Order to Get Life Insurance
You do not need to be wealthy in order to get life insurance. There are many different types of life insurance, and if you don’t have a hefty savings account, focusing on term life insurance is the way to go. This is because term life insurance is one of the most affordable types of life insurance on the market, and it’s great if you’re looking to cover your needs for just a few years.
If I Don’t Have Children, then I Don’t Need Life Insurance
You don’t have to be a parent to need life insurance! Life insurance is designed for individuals who want the peace of mind that their loved ones will be taken care of financially in case something happens. Clients often say they want coverage because they don’t want the burden of having to take care of their family financially if they’re gone.
All individuals, regardless of their relationship status or employment situation, should explore life insurance options. You never know what might happen tomorrow and you need peace of mind that your loved ones will be taken care of in case something does!
There are a lot of misconceptions about life insurance. But you don’t have to be lost in the fog, here’s what we know for sure– Life Insurance is important and provides peace of mind when planning your future with loved ones. Get more information by contacting a life insurance brokerage like Dundas Life today!