To understand Term life insurance has many advantages and benefits, we must look at the most common misconceptions. That means disproving the following myths, in effect a reality check, so you make the right choice for you and your family.
Myth #1: I’m a stay at home parent, so I don’t need life insurance.
False! Just because you don’t get a pay cheque for all your hard work, that doesn’t mean life insurance is unnecessary. In fact, have you ever considered how much it would cost to pay somebody else for childcare and housekeeping in the absence of a stay-at-home parent? It’s a lot of money and plenty reason to have life insurance.
Myth #2: I’m young so odds are I won’t need life insurance.
False! The question is not: “If we are going to die”; but rather “When are we going to die”. However, since we neither have a crystal ball to foresee the future, nor the ability to choose when we will die; we must plan for the worst-case scenario. That is why inexpensive term life insurance is usually recommended for young and healthy people. Term Insurance allows you to purchase adequate coverage at an easily affordable premium.
For example, a March 2007, quote for a $250,000 10-year term policy is only:
- a healthy 35-year old woman costs as little as $172.50 a year.
- a healthy 35-year old man costs as little as $215 a year.
- a healthy 35-year old married couple costs as little as $337.50 a year.
If you can qualify for ‘preferred’ rates, the annual premiums are even less!
Myth #3: If term life insurance is that cheap there must be a catch.
False! A term life insurance policy is designed to provide coverage for a certain term, usually 10 or 20 years; as long as you pay the premium. The premiums are fixed for that 10 or 20 year term and will not increase even if your health changes.
Myth #4: I don’t need life insurance after the mortgage is paid and the kids move out.
Maybe not! But how will your spouse manage financially without your help? Could they cover all the day-today living expenses? What if your spouse outlived you by 10, 15 or even 20 years?
Myth #5: I have group life insurance from work. I don’t need any more coverage.
False! Group life insurance is usually quite limited and may not be protecting yourself and your family as much as you think. Coverage usually ranges from $10,000 to not more than 2 times your salary. Plus, when you leave your job for any reason, including retirement, your coverage ceases.
Myth #6: It’s such a hassle to get life insurance.
False! Quotes are fast, free and easy.