Misconceptions abound about life insurance protection. This is very unfortunate, however, as subscribing to such erroneous beliefs has devastating consequences long-term consequences for both you and those you love. A list of the most common life insurance myths follows. We have supplied corresponding truths designed to dispel them permanently.
Myth: I do not need life insurance if I am single or married without children.
Fact: Life insurance is essential source of debt settlement and replacement income for bereaved parents and spouses. Moreover, many single people have life insurance policies with named beneficiaries that include siblings, parents, nieces, nephews, or cousins with aspirations for homeownership or college graduation.
Myth: I cannot afford life insurance
Fact: going without life insurance is typically far more expensive than carrying adequate coverage. Term life insurance is available that provides loss protection for a specific period of time at affordable premium rates. Most healthy non-smokers, for instance, can usually find a policy priced below the cost of a restaurant meal.
Myth: I have no need for life insurance because I am a homemaker.
Fact: Although stay-at-home spouses and parents might not draw a traditional paycheck, they do perform many household tasks that hired help would command a princely sum to provide. A live-in house cleaner and cook, chauffeur, residential cleaning, and childcare are just a few examples. Life insurance coverage keeps your spouse from going bankrupt while trying to maintain smooth domestic operations.
Myth: I do not need life insurance because my kids are grown.
Fact: Life insurance lets you leave an economic legacy for adult children, grandkids, and other loved ones. In addition, it greatly alleviates the financial burden of final expenses.
Myth: I do not need life insurance because I have a substantial savings
Fact: Underestimating the true costs of death is easy to do. The majority of the U.S. population has insufficient savings to meet these expenses. In such cases, loved ones who are left behind must bear the brunt of burial expenses and trying to retain major assets such as cars and homes.