Tom's Blog
Typical Life Insurance Myths
Discussing life insurance may not be high on your list of preferred topics, but perhaps it should be. Many people have numerous questions about how much coverage is necessary, if it is needed at all, and what type of life insurance to purchase. This type of insurance doesn’t have to be complicated if you are aware of some typical life insurance myths.
You might not realize that life insurance is designed to protect the people who love and depend on you. Imagining what life might look like for your family if something unexpected happens to you is difficult. However, if you have loved ones counting on you financially, it is recommended that you invest in this protection. Before purchasing any type of life insurance, be aware of some common misconceptions that can be put to rest.
Below Are Some Common Myths Concerning Life Insurance, but Not Limited to:
“My employer provides life insurance and that is enough”
Many employers DO offer life insurance protection; however, you need to consider whether the existing amount is adequate to meet your family’s needs should something happen to you. Many factors need to be considered when determining the amount of protection that would be sufficient, such as your annual income, monthly expenses, car loans, home mortgage, education costs, and funeral expenses. To ensure your family/loved ones can maintain their lifestyle, the common rule of thumb is to purchase ten to twelve times your annual income. However, it is always recommended that you contact your local N.C. independent insurance agent for assistance.
“Life insurance is for elderly people”
This is a common myth; however, life insurance is typically more affordable for younger individuals. A healthy young person is eligible for a lower premium rate, so it’s never too early to consider this protection. After all, tragedy can strike at any time, regardless of age.
“I can’t afford life insurance”
While many people consider life insurance to be expensive, you may be surprised at how affordable this protection actually is. Your local N.C. independent insurance agent can provide a quote for insurance that will meet your family’s financial needs so that if the unexpected happens, your family has a financial plan in place for a nominal fee.
“I only need short term insurance”
Yes, short-term insurance is less expensive than a full-term plan; however, planning ahead could save more in the long run. Considering your loved ones, their future, and estimated future expenses, you may wish to consider a 20- or 30-year plan instead of saving a few dollars by only focusing on short-term coverage. Your independent insurance agent can discuss the benefits of both options and guide you based on your unique needs and budget.
“Once I buy a life insurance policy, I never need to review it again”
Life happens and things change. When they do, so might your life insurance plan. It is recommended that you review your policy regularly and stay in communication with your local N.C. independent insurance agent to reevaluate and amend it as necessary.
Your loved ones depend on you! Having something happen to you would be devastating enough without having your family suffer financially. Contact us TODAY at Paramount Insurance Agency to discuss your life insurance needs. After all, your family depends on it.
