If you’re the main breadwinner of the house, it’s vital to be prepared to provide for specific certainties in your life—such as your children’s marriage or future education, your retirement, or loss of income due to sudden disablement, disease, or death. Life insurance products can help you prepare for these certainties, but unfortunately, the utilization of these tools isn’t understood very well by many people.
One reason for this is the number of life insurance myths surrounding the topic. There is so much false information and many misconceptions regarding life insurance. We’re here to help you clear any doubts about the subject and give you the knowledge to be able to decide on your own.
Insurance is a smart risk management decision that protects you and your dependents from the risk of:
- Financial indiscipline
- Market volatility
It also provides you with the ability to structure your products for the long term. It provides long-term guaranteed returns without any call option. Here are some common life insurance myths that you need to be aware of:
Myth #1: Life insurance isn’t useful until you die
Regardless of popular belief, life insurance is more than just a large payout after you die—it’s a tool for managing risk. Risk is associated with living too long as well. Medicinal and scientific advancements have prolonged life expectancy—what if you lived till 90 and retired at 60? It would then be difficult to manage your expenses.
Life insurance will help you build a secure financial future. Check out the various options available for life insurance to create a corpus that will help you stay financially independent even after you retire, while building your wealth and covering any large medical bills. Making timely investments in proper insurance products will always benefit you in the end.
Myth #2: I’m covered by my company, so there’s no need to invest in another policy
Your employer only covers your life insurance during the time that you’re employed by that company. If you retire or leave, your policy is terminated. An organization that’s going through severe financial upheavals might also cancel your policy or reduce the number of benefits that you would get, which would leave you stranded at the moment when you need the cover the most.
Employee insurance by itself might be enough when you’re healthy, young, and don’t have many responsibilities, but as you grow older and have more expenses that you need to face, such as the cost of your children’s marriage, education, and your parents’ medical emergencies, you need a larger cover. Employee life insurance might also only provide your loved ones with a death benefit, which means that you don’t have any financial cushion to fall back on once you retire.
It’s best to add on an extra insurance policy on top of the one supplied by your employer—make sure that this one is customized according to your needs in the future. Opt for a policy that’s able to support you through the rest of your years, as well as ensure that your dependents are taken care of in case something happens to you.
Myth #3: I don’t need life insurance if I’m single, healthy, and young
Life insurance is one of those rare products that can’t be bought when you actually need it. It needs to be bought in advance. It’s best to buy a life insurance policy when you’re still young since the premiums are going to be much lower, and you can get higher coverage at a lower price.
If you have any personal or student loans, this policy will protect your family from becoming burdened with the loan as you grow older and the risk of disability, disease, or sudden death increases. Your policy might also cover your retirement expenses, and health-related expenses, and protect any family commitments you might have made.
Myth #4: Life insurance is too expensive
The premium for life insurance is extremely versatile. There are many different factors that affect the price of the premium—young people have much lower premiums in any insurance policy. A term insurance policy can provide you with a rather large sum of money for an extremely low premium.
Hire a top insurance agency in CA to help you out
Now that you know the difference between life insurance myths and reality, it’s time to invest in this essential coverage. Covered California Certified Agent is a top-notch health insurance company that can help you find the perfect life insurance, employee insurance, group insurance and dental insurance according to your budget and health requirements.
With the number of different policies available, it can get rather overwhelming to choose something that fits your needs. Our agents will work together with you to go over different plans, programs, and costs to provide you with easy access to healthcare.
Reach out to us today by dialing 800-771-7653.