Often at times, people keep off from life insurance topics and discussions not knowing how important it is for their family’s well-being when they are gone. With the technicalities and rules revolving around it, it’s important to have proper knowledge which will give you more confidence to make the right decision before purchasing life insurance.
Below are four common misconceptions about life insurance that are mostly misunderstood making individuals stay away from purchasing this product.
1. I have enough insurance at my workplace
In as much as your employer may provide you with life insurance, there are many other factors to consider. Usually, the employer provides insurance equals to 1-2 times your annual salary which might not provide for your family expenses when you are gone.
2. My family won’t need much when I die and they can easily move on
Unless you have made certain provisions to have all the expenses, mortgage and other utilities paid monthly, it might be very difficult for your family to move on smoothly after you die. It is therefore important to have an income need of at least 70% of all your household income catered for before you die.
3. I’m too young and healthy to buy life insurance
Getting a life insurance cover earlier is of great advantage to take care of your future. This is because circumstances could possibly change. In addition, getting a life insurance while healthy and young enables you to to get lower premiums.
4. Life insurance is expensive
Lately, there are a number of options for finding affordable life insurance coverage. Before purchasing a life insurance cover, talking to an insurance agent who will give you various alternatives is important. Often, you can start with an affordable term policy or a combination of both term and permanent policies. There is also an option of being a policy rider which gives you the opportunity to buy coverage but at a future date.
Since every person’s situation is unique, always ensure to make informed decisions when it comes to life insurance. At NE Arkansas, GTW Insurance our insurance agents will be glad to assist with any queries regarding life insurance matters.