When buying life insurance, there are going to be many details moving through your mind. Among the most important is this one: you are going to pass on at some point in the future. Not exactly a fun thought, is it?
Despite the fact that buying life insurance can be a bit of a downer, if you truly care about your finances it is a purchase you need to make at the right time.
There are many life insurance myths that have cost people a lot of time and money in the past. If you are not careful, one or more of these could take you down the same path.
Five Common Life Insurance Myths
To ensure that you make the right decision, regardless of your situation, here are five myths to avoid:
1. All types of life insurance are the same. Do you really believe this to be true? There are three primary types of coverage to consider:
- Term life insurance
- Whole life insurance
- Universal life insurance
Learn about the finer details of each one, including the pros and cons, before buying a policy.
2. I am unmarried with no kids, so I don’t need life insurance. You may not need as much coverage as a married person with dependents, but you should still buy a policy that can cover the costs of personal debt, other bills, and funeral expenses. If you don’t have coverage, you may be leaving behind a financial burden.
3. My health doesn’t matter. This is one of the biggest myths out there. If you are in good health, you can be rest assured that you will pay less for life insurance than somebody with health issues. For this reason, among many others, you need to take care of your body.
With most life insurance policies, you will undergo a medical exam. There is no hiding any health concerns, so you better take care of yourself.
4. All life insurance policies are expensive. Just like any type of insurance, how much you pay is based on a variety of factors. Some of these include:
- Type of policy
- Amount of coverage
- The company selling the policy
By requesting multiple quotes from multiple companies, you can quickly determine how much you will need to pay each month for the policy you require.
5. Only the primary breadwinner needs life insurance. This has been a longstanding myth, but one that needs put to rest soon enough. Even if you don’t have a job it doesn’t mean you should overlook the importance of life insurance. A spouse who stays at home with any children and takes care of day to day tasks is very valuable. The cost of replacing such services can be expensive.
If you believe one or more of these myths to be true, it is possible that you could make a poor buying decision. Subsequently, it could cost you big time, both now and in the future.