Life insurance is one of the most important healthcare policies people can have – not only for themselves but for their loved ones as well. However, despite all the benefits life insurance brings about, there are multiple myths that keep many Americans from attaining the health and financial benefits that life insurance offers. Most misconceptions are derived from the lack of knowledge and information of what life insurance can offer. To help you understand life insurance better, we have addressed the four most common misbeliefs:
1. Life Insurance Is Too Expensive
One of the biggest misconceptions about life insurance is that it is too expensive. According to a report done by LIMRA, over half of Americans overestimate the cost of coverage at more than three times its actual cost. What most Americans fail to realize is that typical life insurance only costs around $10 to $20 per month for term life insurance coverage, similar to many subscription services that are offered nowadays. Additionally, life insurance costs can vary depending on an individual’s age, health, the type of policy bought, or how much is bought. This means that if life insurance is bought at a younger age, the costs are typically less expensive.
2. Workplace Life Insurance Is Enough
Many people think that the life insurance policies their workplace offers are enough for them; however, these policies are not practical because of uncertainties within work. Ask yourself: What happens when you quit? Remember, when you leave your job, your life insurance policy does not leave with you. Additionally, many workplaces buy insurances in bulk at cheaper prices, which means you may be receiving insufficient coverage and overpayments. Rather than acquiring life insurance through your employment provider, it is best to have the plan that best fits the needs of you and your family. This will be more beneficial for you in the long run because you will be covered regardless of where you work.
3. Life Insurance Is Too Difficult to Buy
Approximately 47% of the American population are putting off getting life insurance coverage because they think that obtaining life insurance is too complex and are intimidated by its processes. What most are not aware of is that from an outside perspective, claiming life insurance may be complicated; over the years, a more simplified underwriting process has become available to the public. Nowadays, most life insurance agencies offer accelerated and automated underwriting that make the process easier and more simplified for customers.
4. Young People Don’t Need Life Insurance
Another popular misconception about purchasing life insurance is that young consumers believe that they don’t need life insurance until they are much older because they are young, healthy, and do not have any spouse or dependents. However, as mentioned earlier, life insurance is notably less expensive when purchased at a younger age and can protect one’s financial future for years to come. According to Life Happens, “Nearly 4 in 10 insured consumers wish they had purchased their policies at a younger age.”
Key Takeaways
Life insurance doesn’t have to be so complicated. Many misconceptions arise from the lack of knowledge of acquiring life insurance. Life insurance provides many key benefits for you and your loved ones, both after you pass and while you are living. After reading this article, we hope that your main takeaway is that the right time for you to get life insurance is now. American Legacy Solutions is committed to working hand-in-hand with you to make sure that you have the coverage that best suits your needs. Reach out to us today to find out more about our life insurance services.