5 Myths About Life Insurance

Life Insurance is the coverage that seems to cause the most apprehension and confusion among buyers. Unfortunately, the many common myths that surround this vital coverage result in too many people waiting too long to buy or paying too much for coverage. Clearing up these top 5 life insurance myths will help life insurance buyers get the right coverage at the right price.

Myth #1. There’s no reason to buy life insurance when you are young. Many people believe they should wait until they have large debts to cover or dependants to provide for before purchasing a life insurance policy. The truth is there are a large number of reasons to get life insurance young. First, it will mean lower premiums. Second, even those who are young could leave behind debts and the financial responsibility of final expenses. Yet another reason is that the younger and healthier a person is, the easier it is to qualify, and coverage will remain in place no matter what happens with that person’s health down the line.

Myth #2. No-medical exam life insurance is the best choice. While it might be a good choice for some, those who are in good health would do well to consider a traditional policy. The health exam might take a little more time, but taking that time can mean qualifying for better rates. Traditional policies also offer more options in terms of policy length and coverage amounts, letting the buyer choose what they really need.

Myth #3. Buyers need to choose between term and whole life insurance. These are the two main types of life insurance, and choosing between them can be difficult. One provides lifelong coverage but carries higher premiums, while the other allows the purchase of a larger amount of coverage at a lower price, since it is only for a predetermined length of time. What many people don’t realize is that there is no need to choose. It’s often the wisest course to have one of each. A whole policy covers the long-term, and a term life insurance policy covers the period when a larger amount of coverage is needed.

Myth #4. Life insurance is expensive. There are so many options for life insurance today that it can be made affordable for just about anyone. The key is to shop around and to obtain life insurance as soon as possible – the older the buyer, the higher the premium is likely to be. Term life insurance policies are surprisingly affordable, and provide the coverage when it is most needed.

Myth #5. Life insurance isn’t available to senior citizens. “Although it was once nearly impossible for people over a certain age to obtain life insurance, today it’s almost never too late.” Tammy Ezer of InsuranceHotline.com says. Companies catering to the senior life insurance market are widespread and more reputable than ever before. This means that seniors who have lost work-related coverage as they retired and are now at a loss to provide for final expenses can get coverage at affordable rates.

Life insurance is the one coverage people are most likely to be without, because they see it as optional or are confused about their ability to qualify. The truth behind the life insurance myths makes it clear that it’s easier and more affordable – and more necessary - than most people think to get coverage.