We invest in safeguards like life jackets, smoke detectors, and snow tires to protect ourselves from unexpected events. Yet, many of us overlook one critical safeguard—life insurance. While we hope for the best, it’s wise to plan for the unexpected, and life insurance can be a key part of that plan.
Life insurance helps protect your loved ones financially if something happens to you. It can cover debts, living expenses, medical bills, and final expenses after your passing. Term life insurance is often simpler and more affordable, offering a range of term options and financial security for your beneficiaries.
Despite its benefits, many people remain uninsured. Here are five common myths about life insurance—and the facts that debunk them.
Myth #1: “I don’t need life insurance because I don’t have children.”
While many people purchase life insurance after having children, you don’t need kids to make life insurance worthwhile. If you have co-signed debts like student loans or mortgages, consider who would be responsible for repaying them if you were no longer around. Your spouse, partner, or even aging parents could be left with the burden.
Life insurance can also help if you want to leave a legacy, such as naming a charitable organization as a beneficiary. And if you do have children, life insurance offers an easy way to help secure their financial future in your absence.
Myth #2: “Life insurance is too expensive.”
Many people overestimate the cost of life insurance. While premiums vary based on age, sex, and plan type, life insurance can be affordable for most people. Plus, premiums usually remain fixed over the life of the term, whether 10, 20, or even 100 years. The younger you are when you purchase a policy, the lower your premiums will be.
The cost of a life insurance premium is often far less than the financial burden your loved ones could face if you were to pass unexpectedly.
Myth #3: “My employer’s coverage is enough, so I don’t need extra life insurance.”
Employer-provided life insurance plans often cover only one to two times your salary, which may not be enough to fully support your family. Personal life insurance policies are not tied to your employment, making them a more reliable long-term option. With personal life insurance, you’re the policy owner, and it’s portable—you take it with you even if you change jobs.
Myth #4: “Life insurance is too complex, and I don’t want to go through a medical exam.”
The process of getting life insurance is easier than you may think. With some plans, eligible applicants can receive instant approval without a medical exam, depending on age and coverage. Even for those with health concerns, there are policies like guaranteed acceptance life insurance that offer coverage without health questions or medical exams.
Myth #5: “If I don’t end up using life insurance, it’s just wasted money.“
Life insurance is not about immediate returns—it’s about long-term peace of mind. It ensures that your family is financially secure in case of your passing. The sense of security that life insurance provides is worth the investment.
If you’re unsure about life insurance or want to explore your options, now is the time to take action. Visit FinancewithYomi to learn more and secure the right coverage for your family’s future.