The world of life insurance can be tricky to navigate due to all its technicalities. Our agents often find themselves tackling common misconceptions and concerns our clients bring to the table. We are here to debunk six of the most common life insurance myths, so you feel confident in acquiring the best coverage for you and your loved ones.
Myth #1: You don’t need life insurance if you’re young and have no children.
Having no dependents and being in your 20s doesn’t mean you don’t need a life insurance policy. If you’re working your way through student loan debt, life insurance can be beneficial. After all, your debts and expenses are passed on to your loved ones after you die, with debtors targeting savings and property you might be intending to leave behind. Acquiring life insurance provides a safety net, ensuring the burden of your debt ends with you. Additionally, buying a life insurance policy when you’re young saves money in the long run, as you may qualify for a cheaper policy faster.
Myth #2: Life insurance is expensive.
According to a LIMRA and Life Happens study from 2021, most people believe the cost of life insurance is three times more expensive than it actually is. The truth is life insurance is affordable, and as noted above, especially affordable if you’re young and healthy. There are $500,000, 20-year life insurance policies that cost as low as $25 per month! Your best bet is to shop with the guidance of a licensed insurance agent, finding a good balance between your life insurance needs and budget.
Myth #3: COVID-19 isn’t covered by life insurance.
Deaths from infectious diseases are covered by life insurance policies, meaning your carrier will pay if you pass away due to COVID-19. Your vaccination status has no impact on the payout either, meaning you won’t be denied coverage if you aren’t vaccinated. However, keep in mind that if you are infected with the virus while applying for life insurance, your application may be delayed until recovery in order to accurately gauge your health.
Myth #4: If you have savings, life insurance is unnecessary.
The average person does not have enough savings to leave behind and support their dependents for the remainder of their life, and to pay off all their debt. Life insurance ensures there is enough money backing you and your loved ones in case you pass away before accomplishing your life-long savings goals, and the reality is that you most likely will. There is also always the chance of you dying at a younger age, having a life insurance policy provides a much-needed safety net for this worst-case scenario.
Myth #5: The beneficiary owns the policy.
It’s easy to see how this misconception may arise, but keep in mind that the beneficiary is simply the person who receives the payout from the life insurance company. The policyholder, on the other hand, is the person who buys and owns the policy itself. They are who pays the premiums, and they are the only one who is authorized to make changes to the coverage.
Myth #6: Your life insurance company automatically pays out when you die.
As a beneficiary, if the life insurance policyholder dies, you have to file a claim with the life insurance company in order to acquire your payout. This process may last from two weeks to 60 days and starts with filling out a claims form and calling the life insurance company.
Get your personalized life insurance quote with Comfort Insurance & Finances today!
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