5 Common Life Insurance Myths - United Benefits

While the importance of having a life insurance policy may seem obvious, there are several common life insurance myths that keep people from protecting themselves. These misconceptions may stop people from getting the coverage they need to help provide for their family’s future. Let’s bust these life insurance myths once and for all.

Myth 1: Life Insurance is Too Expensive

Reality: While the cost of life insurance will vary depending on your age and health history, a United Benefits Specialist can help you explore life insurance options to help you find an affordable policy.

According to a study by Life Insurance Marketing and Research Association (LIMRA), many Americans estimate the cost of life insurance to be more than three times its actual average. Price is the main reason people decide to skip life insurance, but it may be more affordable than you realize.

Myth 2: Young, Healthy People Don’t Need Life Insurance

Reality: Life insurance can benefit your beneficiaries in the event of your death. Since death is inevitable, everyone, including healthy people and young people, can benefit from life insurance coverage.

The purpose of life insurance is to provide your beneficiaries with money to help cover expenses. The right life policy will factor in the needs of your beneficiaries and what expenses you’d like to cover. Even if you have savings, a life insurance policy can offer another layer of financial security.

Myth 3: You Can’t Get Life Insurance with a Pre-Existing Condition

Reality: You may be able to get life insurance if you have a pre-existing condition depending on the life insurance provider, whether a physician is necessary, among other things. These factors may impact your premium as you are issued a policy.

As part of the application process for a life insurance policy, you may need to undergo a medical exam. This exam typically includes blood work, an assessment of your health history, and a few health tests like checking your blood pressure, height and weight, and pulse. Your premium will depend on the results of the medical exam. The healthier you are, the lower your premium will be for comparable coverage.

Myth 4: Life Insurance Through Your Employer is Good Enough

Reality: Employer-provided life insurance is typically group life insurance, meaning it likely won’t offer as much coverage as an individual policy. If you are in federal service, the life insurance provided is through Federal Employee Group Life Insurance (FEGLI). Employer-provided life insurance often does not continue after retirement and may not be able to be customized to suit you and your family’s needs.

You can purchase your own life insurance to supplement or replace employer-provided insurance if you need more coverage, want flexible options, and want to take your life insurance with you when you change jobs or retire.

Myth 5: Stay-at-Home Spouses Don’t Need Life Insurance

Reality: Stay-at-home spouses perform a lot of work that costs a lot to outsource, including cooking, cleaning, household management, financial planning and management, and childcare.

When a stay-at-home spouse dies, the surviving spouse may need to outsource some of these daily tasks, especially if there aren’t other individuals nearby who can help, which can affect the family’s finances tremendously. A life insurance policy for the stay-at-home spouse can help provide essential resources in the event of their passing.

Benefits of Life Insurance

Life insurance is a crucial component of your long-term financial planning. If you’d like to explore your options for planning for your family’s financial security, a United Benefits Specialist can help. Use the form below to get in touch.

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