Life insurance may be a subject you don’t want to talk about because you can’t imagine leaving your loved ones. Think about if you were unable to help with the expense of your home, your child’s education, or car payments. Would your family be able to cover everything without your income? Some types of life insurance can protect against financial hardship by providing rapid access to funds for you and your family during your lifetime. Life is unpredictable, and having coverage can provide a secure future for your beneficiaries.
Despite what you’ve heard, life insurance isn’t just for older folks, and it’s not as expensive as you think. Keep reading to find out the truth about life insurance and the benefits it can provide for your family.
Myth #1: You don’t need life insurance when you’re young
Many people think life insurance is only important when you reach a certain age, but the truth is that life insurance isn’t just about age; it’s about financial security and planning for your future. Getting life insurance at a young age can help you save money in the long run by securing affordable premiums and rates. Some life insurance policies also offer financial benefits like cash value which can be used to pay off debts, school tuition, or emergency expenses.
Myth #2: Life insurance is too expensive
There are different types of life insurance that vary in cost. However, most people can find a life insurance policy that satisfies their needs and fits into their budget. Although your premium is dependent on multiple factors like age, health, and risk, the benefits it offers to you and your loved ones will outweigh the cost you pay in premiums. Think of it like this: the monthly expense of your life insurance will likely be less than your monthly phone payment.
Myth #3: You can’t get life insurance if you’re self-employed
Being your own boss doesn’t disqualify you from getting life insurance. It’s recommended to get a life insurance policy that is 10-15 times more than your annual income. Financial stability is the main purpose of life insurance: ensuring that those who depend on you can continue their lives the best they can without you. Your insurance premium may be impacted if your job is considered high risk like construction, roofing, or electrical industries; however, your insurance provider will assess these details. Regardless of your job, a personal life insurance policy is essential for you and your loved ones.
Myth #4: You don’t need life insurance if you already have it through your employer
Having life insurance through your employer is a great benefit. However, your employer’s insurance may not be enough coverage, and if it’s a limited term policy, it would only cover you to a certain age or for a limited number of years. If you were to leave your job, your benefits would likely change or end, and probably wouldn’t be worth as much as a personal policy. It’s important to have a personal policy on top of your employer’s insurance. Multiple policies means extra coverage, and having policies that aren’t dependent on your job can provide more stability.
Myth #5: You won’t qualify for life insurance if you have existing health issues
Even if you have a pre-existing medical condition, don’t put life insurance on the back burner. Individuals with medical conditions can still qualify for life insurance, but you might pay more in premiums due to your health. There are policies for high-risk individuals that may have lower limits and shorter terms, but don’t let that scare you away. Having some coverage is better than none. Guaranteed issue policies offer coverage with no underwriting and no questions asked. Check with your insurance provider for more details on what they offer.
Myth #6: You don’t need life insurance if you’re healthy
Many individuals might think life insurance isn’t necessary if they’re healthy, but that couldn’t be farther from the truth. Life can throw curveballs that aren’t on our agendas. The “what if” moments aren’t fun to think about, but covering them should be a priority. Getting life insurance when you’re healthy and in good shape means that you’ll secure the most affordable rates and have some financial protection in place. Being well-prepared for life’s uncertainties can significantly impact the future of those who rely on you.
Myth #7: You don’t need life insurance because you already have a savings account
If you have people who depend on you and your income such as a spouse, child, or parent, having more than one way to care for them is crucial. Savings accounts are beneficial, but when unexpected events occur, your savings may run out and your loved ones might be left with insufficient funds. The payouts from your life insurance policy may be much larger than what you have in your savings account. It’s wise to build your savings with each passing year, but life insurance plays an important role in covering the larger expenses that your family might be left with.
Myth #8: The application process for life insurance takes too long
The misconception that applying for life insurance is always a long and invasive process is not completely true, as most policies are usually issued within 1-2 months. When you apply for life insurance, your insurance provider has to check all the boxes to make sure you qualify for coverage. Since your health, age, and risk all play a part in determining your eligibility, medical exams and detailed health checks must take place, resulting in a lengthier process. However, No-Exam or Simplified Issue life insurance policies may be offered and will likely be a quicker option. No-Exam life insurance policies may be a good choice for you if you’re looking for an accelerated approval time. This option is typically only available under specific circumstances, but it greatly reduces the time to receive your coverage—as quickly as same-day service in some cases.
If you don’t have life insurance yet, the best time to get it is now. You don’t have to wait for big life changes to secure coverage. Regardless of your health, age, and job, life insurance provides financial security for your loved ones. Get coverage today by calling your hometown Alfa® agent for a quote.
*This is not an insurance policy. It is intended only to provide a general description of Alfa Insurance® and/or its product lines and services. An actual policy contains the specific details of the deductibles, coverages, conditions and exclusions. Your Alfa® agent can explain the policy and benefits and answer any questions you may have before you buy.