Life insurance is probably one of the most important purchases you will make, yet more than 40 percent of Americans don’t have it, according to the 2015 Insurance Barometer Study by Life Happens and LIMRA. In honor of Life Insurance Awareness Month (LIAM), we are setting the record straight on these four common myths.
Myth #1: You only need life insurance if you have kids.
Fact: Although most single people don’t necessarily need it, there are exceptions. If you provide financial support to your parents or siblings, or have substantial debt that you don’t want to pass onto your surviving family members, then you should consider purchasing life insurance.
Myth #2: You only need life insurance when you are older.
Fact: Although younger individuals are less likely to die, they are more likely to leave behind a younger family that could struggle financially with the sudden loss of income. Additionally, premiums increase with age, so it is best to purchase coverage when you are young and healthy.
Myth #3: The life insurance through my employer is enough.
Fact: If you are single and don’t have any major debts, the coverage provided by your employer might be enough. However, if you are married and have kids, it is important that you purchase a separate life policy. Your employer’s coverage may not provide enough protection as your family’s needs grow. Keep in mind that employer coverage will disappear if you change jobs.
Myth #4: Life insurance is expensive.
Fact: Life insurance might be less expensive than you think. According to Life Happens, a healthy 30-year-old can get $500,000 of term coverage for about $1 a day. If you are still worried about the cost, start out with a term policy and then purchase a universal or whole life policy, at a later date when you feel more financially stable.
For more information, contact Annette Cho, our Life and Health Representative, at 800-342-3859 or visit our website at www.mcgrathinsurance.com.
*This article is written for informational purposes only and should not be construed as providing legal advice.