Life Insurance Myths You Shouldn't Fall For
- Author: Mary Singleton
- Posted: 2024-11-13
Of all the different types of insurance out there that people are either compelled to buy or pick up due to it being a good idea, life insurance is probably the most controversial. Part of the reason is that people don't really consider their death. It's a scary thing. Some people go down that road and end up depressed and they constantly think about their own demise. Many people are so scared of sharing that same fate that they don't even want to think about death at all, and so they refuse on principle to consider life insurance. Others have bought into some of the myths floating around about life insurance, and so they tend to stay away from it in general. Auto insurance is a must-have if you drive, and most mortgage companies force you to have homeowners' insurance. Many career choices you make will make you buy health insurance. But when it comes to life insurance, not only is it not compelled, but it has a negative stigma in the mainstream.
This negative stigma has built up a lot of myths surrounding the topic of life insurance. To put it simply, you need some sort of life insurance plan when you're an adult. There's really no excuse not to have it, outside of not being able to afford it at all. You shouldn't buy into the myths surrounding this type of insurance. Here are some of those myths debunked.
Life Insurance is Too Expensive
The average life insurance policy that pays out over $50,000 at the time of death is only around $25 per month. Of course, there are a lot of factors to consider here. The age you are when you get the policy might dictate the rates. For instance, a 60 year old person is likely going to have to pay more of a premium than a 20 year old person. One is considered far less of a risk with much more life to life, while the other is considered to be practically a senior citizen. Even still, the rates are nowhere near as much as other types of insurance. Auto, home and health insurance premiums are all more than life insurance. Basically, the life insurance company expects you to meet the current average life span, and so they make money if you live to an old age.
Most people are going to be able to find a very affordable policy that pays out quite a lot when they die. Even if you're choosing the lowest premiums, you'll still be able to get a good insurance policy.
You're Too Young for Life Insurance
Another common myth is that you can be too young for life insurance. This is the opposite of truth; it's like anti-truth. In fact, the younger you are when you receive a policy, the cheaper it's going to be. If you're only in your 20s, for instance, you're going to be able to get a sweetheart policy that only costs you a little bit every month, but that little bit you pay in is going to pay off in a big way for your loved ones when you die. Of course, nobody really wants to think about it, but you have to prepare for such a day. Having life insurance is vital. If you're over 18, you need to consider getting insurance.
In some instances, people reach adulthood and find that they already have a policy that they can cash out or roll over. This is because companies like Gerber sell life insurance for children, and it's usually their parents or grandparents paying a few dollars a month for these policies.
You Don't Need it Without a Family
A lot of people don't have a family and so they consider that there's no reason to get an insurance policy. After all, who will they give the money to when they die? However, not having a traditional family doesn't mean that you don't have a partner. You may still have someone living with you, and your death is going to saddle them with a lot of expenses that they may not be able to handle. It's important that you have a life insurance policy, even if you're unmarried and don't have kids.
The good news is that life insurance doesn't really cost a lot, unless you're already really old and/or unhealthy. If you're just a normal person, you can get a good policy for cheap.