Most people have heard of life insurance, but many people do not have a policy. Do you? You may feel young and healthy. Surely, life insurance is just something for the elderly or terminally ill. The truth is, anyone who wants to make sure their loved ones are taken care of should have insurance. Thinking about passing on isn’t pleasant, but that is not a reason to avoid the topic of life insurance. If you can familiarize yourself with misconceptions surrounding insurance, you can make a well-educated decision.
Life Insurance Is Only For Seniors
Life insurance plans for seniors are very important. However, plans are a great idea at any age. While there is no minimum age for life insurance, many plans do have a maximum age to sign up. You don’t want to miss your opportunity to get insurance by waiting too long. Anyone with loved ones or assets should research plans.
Life Insurance Is Only For Final Expenses
Insurance does commonly help cover final expenses, but it can be used for more. It can help replace lost income for your family. Depending on the plan you choose, the funds can be used for things like outstanding debt, mortgage loans, college tuition, and inheritance taxes.
Life Insurance Is Costly
There are a number of different insurance companies and plans. That means you can find the right plan to fit your needs and budget. Plans can start as low as $15 per month. That low price may provide peace of mind.
Life Insurance Comes In One Type
Life insurance comes in a variety of types to fit your needs. You can consider term life, whole life, variable life, group life, universal life, and more. Differences are based on the cash value of the plan as well as monthly premiums. Decide what function you want your insurance to serve. You can even reach out to a professional for recommendations.
Life Insurance Is Difficult To Get
You may have heard that you have to pass a stringent health screening to get life insurance. That isn’t the case. Many companies do require a basic exam to help set your premiums. This exam will check factors like blood sugar, blood pressure, drug or tobacco use and cholesterol. Healthier applicants will receive more affordable plans. Some companies will allow you to forego the exam and simply pay a higher premium upfront.
Life Insurance Only Protects Family
It is common for spouses or children to be named as beneficiaries. However, beneficiaries are not limited to family. As long as your insurance company and state of residence do not object, you can name a person, trust, charity, or estate as your beneficiary. This is an especially important factor to consider if you own a business. You want to make sure your business partner will not financially struggle with your passing.
How many misconceptions did you believe about life insurance? Now that you have a clearer understanding, it may be time to look into insurance. Remember, it’s not just for you. It’s for your loved ones.