There’s a lot of confusion out there surrounding life insurance. A 2018 study of 1,000 American adults by LendEDU found while 54% of respondents had a life insurance policy, 33% of those who did said they didn’t fully understand how their policy works. Here are four life insurance myths and the truth behind them.
1. Life Insurance Costs Are Too Expensive
Life insurance costs depend on a number of factors, including the policy’s term, the policyholder’s age and health, and the coverage the policyholder gets. There is affordable life insurance for many budgets.
Some policies cost as low as $135 a year, or barely $12 a month, while providing the peace of mind if something happened to the policyholder, their family and dependents would be covered.
2. My Employer Sponsored Life Insurance Is Enough
Group life insurance is a great option, but coverage through an employer alone poses risks for the policyholder. Your employer life insurance policy may not provide all the coverage you need. Also, if you lose or quit your job, it’s possible that you will also lose your life insurance. If that happens, you’ll have to apply for a new policy, which may be far more expensive than if you opted into a personal policy.
3. Only Breadwinners Need Life Insurance
If you’re married with children and are responsible for familial duties, your loss would undoubtedly impact your family. A breadwinner who loses a spouse who is the primary caregiver or a stay-at-home parent may have to compensate for that loss financially by hiring a childcare provider or a housekeeper. The loss of a partner may significantly impact the surviving breadwinner. Life insurance for both spouses provides protection and peace of mind now, no matter how circumstances may change.
4. I Don’t Have Kids, So I Don’t Need Life Insurance
Whether you’re married without kids or single and don’t have kids, you can still benefit from life insurance. Regardless of your age, life insurance should be a significant consideration if you have assets or loved ones to protect. It can help cover any outstanding debt or financial commitments you have.
Cosmo Insurance Agency is a full-service independent insurance agency based in Hackensack (Bergen County) and Lakewood (Ocean County), New Jersey that offers an all-encompassing range of insurance options for both individuals and businesses. Cosmo keeps its promise to assure an efficient and creative approach to the services we offer. Each of our clients experience a personalized and long-term relationship with us. Our New Jersey based team of health brokers guides our clients in helping them choose the most cost-effective options. By incorporating our knowledge of the insurance guidelines for healthcare, employee benefits, life insurance, self-insurance, dental, disability, and long term care insurance, we keep our clients up-to-date with affordable plans that cover all their specific insurance needs.
