Your family is important to you. There is no denying that. They are the people that you make memories with. The ones you build dreams together with and go through the ups and downs of life with.
It is a fact that you need to protect them, even if you are not physically on this Earth to do that. That is where life insurance comes in.
This is one of the most important types of insurance you need to make sure you have in place. Not only does it cover the cost of funeral expenses, doctor bills, and paying off debt, but it can keep your family living a life they are used to even if you are not there any longer.
Here are some myths about life insurance that we think you should be aware of:
MYTH #1: Life Insurance Policies are all the same
There are different types of policies to choose from that will provide your family with the best protection for them. The two main categories are term and whole life insurance. The difference in these is what you need to know to determine what is best for your families needs. Term life insurance has lower rates but it does run out in time. Whole life insurance provides coverage for life but it is a bit more costly. You also don’t have to choose between them. You can easily have both policies. You may want a term policy to help your family pay expenses if you were to pass away suddenly but you may also have a whole life policy in place so that your family will receive money to take care of themselves long term as well.
MYTH #2: Life insurance is very costly
There are plans to fit every budget. You can also change your plan in time. So you may start with a smaller plan and increase it as you need to and can afford to. Or in the reverse scenario, you may have a larger plan when your family is younger and as your kids grow up and things are getting paid off you may make that plan smaller as you don’t need as much coverage. Premiums for any type of life insurance is based on your age at the time the policy is issued. That is why it is advantageous to secure coverage at an early age to lock in lower premiums.
MYTH #3: I may not qualify
You can choose a life insurance policy that doesn’t require you to have a medical exam in order to secure it. All you have to do is p give the insurance company permission to obtain general health information to get coverage quickly.
MYTH #4: Having life insurance at work is enough.
Your needs for coverage may be different than the basic policy provided by your employer. Also, employer plans may not last past retirement so be sure you know what the plan policies are.
MYTH #5: You don’t need to revisit your life insurance policy after you purchase it.
You don’t want to purchase your policy and never look at it again. It’s important to review your policy. You may want to mark on your calendar to do this yearly at the same time so you can make sure you have the right coverage in place and that there are no changes that need to be made to the policy based on changes in your life.
Now that we have the Myths out there, how about some Facts!
FACT #1: If the household breadwinner were to pass away, over one third of all American households said they would experience the financial effects of that within a month.
FACT #2: 1 out of 5 people think they don’t have enough coverage in place for their life insurance policies.
FACT #3: Roughly 16% of Americans have no idea how much coverage their significant other has. These are important conversations you should be having with your loved ones.
It’s time to really focus on your future and the future of your family. Sit down together and talk about what you need to have in place to ensure everyone feels protected, financially secure during a time of loss and able to keep living a lifestyle they are accustomed to no matter what.
Make sure everyone that needs to be aware of things knows where it is located and what is in place. Have your documents easy to find and access and make things as easy as possible in the event that you are no longer able to care for your family.
Here at John Scott Insurance Agency, we are able to provide you with the support you need to get the best policy in place for you and your family. Just reach out and let’s talk.