Tom's Blog
Common Misconceptions Surrounding Life Insurance
You may not think about acquiring life insurance until later in life, but if you’re in good health, now might be the best time to consider it. If you have a family or anyone who depends on you financially, life insurance becomes essential for their well-being should something unexpected happen to you. Before you purchase life insurance, it’s important to address some common misconceptions surrounding this type of protection.
Remember, life insurance is meant to benefit your loved ones, not just you. It offers peace of mind, knowing that if something happens to you, your family can maintain their current financial lifestyle. Protecting those who depend on you covers much more than that, ensuring security through a life insurance policy.
Face the Facts!
Before considering life insurance, it’s important to address some of the most common misconceptions.
“Life insurance is only for older people.”
Many believe that life insurance is strictly for older individuals. In reality, anyone with loved ones who depend on them for financial security should have a life insurance policy in place, no matter their age. Life is unpredictable, and having protection in place is crucial for ensuring the financial security of your family and loved ones.
“Employer-provided life insurance is enough.”
Relying solely on your employer’s life insurance policy is a common misconception. To determine the right amount of life insurance for your needs, evaluate all income, annual expenses, monthly bills, medical costs, education expenses, and estimated funeral costs. A general rule of thumb suggests having coverage worth 10 to 12 times your annual income. However, it’s always wise to consult with your local N.C. independent insurance agent for personalized advice.
“Short-term life insurance is sufficient because it costs less than long-term coverage.”
While short-term coverage may cost less initially, long-term protection might better suit your needs. If you have children or plan to have them, consider the anticipated costs of their college education and opt for a 20-year or even a 30-year plan. Although paying more upfront might seem burdensome, it can save money in the long run.
“A life insurance policy rider provides essential protection.”
Don’t assume a policy rider is necessary just because an agent recommends it. Before purchasing a rider, consult with your local N.C. independent insurance agent to determine if it truly benefits you or if it’s simply an increase in your premium.
“Once you purchase a life insurance policy, no further action is required.”
Life changes, and so might your life insurance needs. Regularly reviewing your policy ensures you aren’t paying for unnecessary coverage and helps identify any additional protection your loved ones might require.
Paramount Insurance Agency understands the importance of your family and loved ones, and we’re here to answer any questions you may have regarding your life insurance needs. Call us TODAY at 336-869-3335.
