Life Insurance Myths

As far as financial planning is concerned, life insurance is among the most important tools you can utilize. The importance of it can not be understated when deciding on your financial plan. Common misconceptions often prevent people from purchasing the coverage that would most help them and protect their loved ones. But we are here to dispel those myths and alleviate your worries.

I'm Single, I Don't Need Life Insurance

Many people think that, because they are living solo and have no dependents, that you don't have any need for life insurance. But life insurance can still be useful to you even if that is the case, but there are other uses. Whether it be college debt or mortgage payments, there will be things that will be left behind that still need to be taken care that will fall on others to pay for.

My Coverage Needs To Be Twice My Salary

Despite what you may believe, there are no real set rules for coverage and how much you should have. The amount of coverage you need in your policy is unique to your life. When deciding how much coverage you need, take the time to consider these things first:

Your income
Any major debt
Everyday living expenses
Future expenses like college tuition

A good rule to follow is adding up these expenses for the yearly coverage needed. Consider how long you will need coverage for and add that into the final amount of coverage needed. If you are unsure, give us a call and we will help you figure out what exactly you need.

My Insurance Through My Employer Is Enough

In the majority of situations, the coverage you receive through your employer will just not be enough, especially when you factor in having dependents. Take the time to go through the things we listed above and really consider how much coverage you need and compare it with what is provided through your workplace. The typical coverage is usually a set amount or a percentage of your salary. Most likely this coverage will fall short of what you actually need, so purchasing additional coverage is probably a good way to go.

Only The Primary Breadwinner Needs Coverage

If you have a partner, and you have dependents, it is very important that you both have life insurance policies. Covering the costs of a homemaker can be more expensive than you might initially think. When you are you thinking about insurance for stay at home partners, you have to factor in things like the cost of child care and the costs of things they provide around the home. Think about how much it would cost to replace that with a service provider and factor that into the cost of the amount of life insurance you purchase.

Before you allow things like myths and misconceptions prevent you from purchasing life insurance, take the time to do some research and give us a call to determine what exactly life insurance can do for you.

Brett Royster