In our Women & Financial Wellness blog series, we’ve been discussing simple tips and tools for making smart choices with your money. Throughout the series, we’ve shown how life insurance can be an important financial tool to protect your family’s financial future.
Still, many myths exist about life insurance. Here are 5 common misconceptions about life insurance and the myth-busting facts that dispel them.
Myth #1 Life Insurance Is Expensive
Perhaps the most common misconception about life insurance is that a good policy will be prohibitively expensive. But the truth is a shocking 80 per cent of consumers overestimate the cost of life insurance (lifehappens.org, 2015). Of course, prices vary by the type of product you buy. If your needs and budget are basic, there are good, reliable insurance products available with the essential features. Often these can start for as little as $6 per month. The best thing to do would be to do your research. This will definitely break the myth of life insurance being expensive. Companies such as Affordable Life USA offers senior life insurance and understandably, this will differ depending on what you want to include in this policy. Speak to specialists who can help you make a decision on an important topic such as life insurance. At least then you know you’ll be in the best hands possible and know that this is one less thing for you to worry about. Visit https://www.insurancequotes.com/life to get quotes for life insurance and see what the cost to you really would be.
Another tip: don’t procrastinate. Buying a term life insurance policy when you’re young and in good health may also help you save money in the long run. The cost to buy an insurance policy often increases with age. So, if you’re in 20s or 30s, planning a head for your future needs can save you in the long-run.
Check out our Needs Analysis Calculator and find a quote today. We can help you find a policy that matches your lifestyle and your budget.
Myth #2 I’m not the breadwinner so I don’t need insurance
As we discussed in our article Women and Insurance: Are Women Missing Out?, many women don’t fully consider how much their income and care-giving contribute to their family’s wellness. This helps explain why 58% of Canadian women don’t carry life insurance, even if they work full-time (LIMRA, 2012). Consider this: if you were to pass away, would your family be able to maintain their lifestyle with the loss of your income and/or the amount of childcare you provide?
Even if you don’t work outside the home or only work part-time, coverage can help your family pay for funeral costs, household expenses and childcare. The right policy can protect your family’s lifestyle and give you peace of mind.
Myth#3 My employer-provided life insurance plan is sufficient
Many educators purchase life insurance plans through their place of work and assume their plan will provide enough coverage. Here are two questions you should ask about your employer-provided life insurance plan:
- If I change jobs, take leave or lose my job, will I still have coverage?
- Does the plan I have provide enough coverage?
You may wish to purchase an additional, independent insurance plan, such as term life insurance, to better protect your estate.
Myth #4 I’m young and single; I don’t need life insurance
For young professionals beginning new careers, life insurance may seem secondary to savings. But this stage of your life can be a great time to purchase a life insurance plan. For young professionals, premiums are typically the most affordable they will ever be.
Buying a long-term plan when you’re young and healthy can provide protection for years to come, even as your assets grow or your health unexpectedly changes. There are life insurance products that offer younger people flexibility to evolve their coverage (renew, increase or decrease) while locking in in good health.
You may not think you need it now, but you’ll thank yourself later on!
Myth #5 Purchasing a life insurance plan is complicated
Some people are concerned that purchasing a life insurance plan is needlessly complicated and requires a medical exam with dreaded needles. This isn’t always the case. The advent of online underwriting for life insurance is simplifying the process, allowing many to get coverage in just a few minutes.
No matter what life insurance you explore, a little research will help you organize the features you need before you go shopping. And be prepared to answer some medical questions about your history and lifestyle – organizing your family history in advance can be a big time saver when it comes to the application process.
But start your planning first with a Needs Analysis Calculator.
What’s Stopping You?
Start your insurance planning first by checking your misconceptions at the door. Then use the Teachers Life Needs Analysis Calculator to determine how much coverage you need to protect your family. Finally get a quote by answering 4 simple questions. You’ll be well on your way to better breaking down the myths that might be stopping you from getting life insurance.