Life insurance is unique because it is coverage that you get for someone else. This type of policy pays out a specific amount to your beneficiaries after you pass away. Here, we’ll examine some of the common myths surrounding life insurance policies.
Myth: Only People With Kids Need Life Insurance
There are many reasons to get life insurance, and children are only one. This type of policy can help you support dependent family members after you pass. If you have a spouse, insurance can be important while they are grieving, especially if you both still have a mortgage.
Life insurance can help pay for your part of a debt if you have a co-signer on a loan, or to pay for the funeral you want. Some individuals even use their life insurance to leave a gift to their favorite central Pennsylvania or national charity.
Myth: It’s Expensive
In many cases, it costs less than a dollar a day to get term life insurance. There are also many ways to bring down the cost. You can get a quote from Strock Insurance or talk to someone at one of our locations to find out how affordable it can be.
Myth: You Need to Have Perfect Health to Qualify
There are many types of life insurance, including policies that don’t require you to answer health questions. If you have recovered from a medical condition, you may still qualify.
Myth: You Should Always Choose Term Life Insurance
Term life insurance can offer a high death benefit and low premiums, but when these policies expire, you may have to pay a lot more. You may even no longer be eligible for life insurance due to your age. Whole life insurance continues as long as you keep paying, so you can be sure your beneficiaries get a benefit even if you change jobs, fight a serious illness or live a very long life.
Whole term policies also accrue value with time. You can borrow against them if you need to, and the interest rate you pay on this loan is lower than that of most credit cards.
Myth: My Job Covers Me
Not all jobs offer life insurance, and some only pay out on specific terms or provide only a nominal amount. Always check exactly what your job offers and consider that your policy may no longer be in place if you change jobs or roles within the company.
Myth: Only the Main Income Earner Needs Life Insurance
No matter who passes away, final medical costs, funeral costs and other expenses can add up. In addition, every member of a household contributes — if anyone is suddenly gone, the rest of the family may need to pay for services and support. Life insurance can help with these costs.
If any of these life insurance myths and facts surprised you, ask yourself whether you might get a better deal on your insurance now that you know the truth. Central Pennsylvania residents can get a quote from Strock Insurance to find out how affordable life insurance could be.