You know those claims you hear about certain things, yet you’re never certain if it’s just people talking hearsay and not providing any sort of evidence as to what they’re saying? Sometimes, you just want to question them to see if they know what they’re talking about.
Well, life insurance is one of those things most
people know they should likely have, but a lot of myths surround the topic.
Here, we’ll put to rest some of those claims you may have heard about this type
1. I’m single with no dependents and don’t need coverage.
You still need enough insurance to cover any personal debts you may have, along with medical and funeral bills that could rack up in the event you’re struck by disaster. You don’t want to leave unpaid expenses to your family or someone else if you happen to be uninsured. Another thing is that you can leave money to a charity of your choice if you do happen to be single with a low income.
2. I must
have life insurance at any cost.
You should probably have it in most cases. The thing is, certain individuals with huge assets but no debt or dependents might choose to not insure their lives. If you have funeral costs covered, too, this type of insurance is considered optional.
3. My coverage should be two times my salary.
Your insurance needed is dependent on your own situation, with many factors that need weighed. Not counting your medical and funeral bills, you may also need to pay off a mortgage and even provide for your family over the course of several years. The true amount of insurance you might purchase all comes down to a cash flow analysis. It’s not as easy as doubling your yearly salary.
4. My term life coverage at work is already enough.
It could be, especially if you’re single and your employer’s coverage is decent enough. But if you’re married or have other dependents or know that you’ll need extra coverage upon death, you may actually need a separate policy to help cover the needs.
5. Only the person making the money needs coverage.
This is far from the truth. Even if one spouse is making significantly more money than the other or one is stay at home, there are other factors to consider such as daycare and cleaning costs that the stay-at-home spouse may have been responsible for.