January 5, 2021
Getting life insurance is an important decision. After all, it will help protect your family if anything were to happen to you. Since it’s such a big decision, it’s important that you separate fact from fiction. Here are ten of the most common myths about buying life insurance.
Life Insurance is Expensive
A term life insurance policy is usually more affordable than people think. Every company has its own way of determining premiums, so be sure to shop around when looking for a term life insurance policy.
You’re Too Young to Worry About Life Insurance
Even if you’re in your 20s, it might still be a good idea to consider getting life insurance.
Getting insured while you’re young can help you plan for your future as well as help you lock in affordable premiums.
Your Savings Are Enough
You may have enough savings to last you through your retirement, but what about your final expenses? Getting life insurance will help your loved ones pay for your final expenses and any outstanding debts.
You’re Single, So You Don’t Need Life Insurance
Even if you’re single and don’t have kids, the family members you leave behind may be responsible for paying off your debt and expenses. You can give them peace of mind by getting a life insurance policy.
You Don’t Earn an Income, So You Don’t Need Life Insurance
If you are a stay-at-home parent, life insurance is still important. If you were to die, your spouse may need to pay someone to perform the labor that you do at home, so it’s a good idea to still buy a life insurance policy.
You’re Stuck With Your Original Policy
Just because you have a certain policy doesn’t mean you’re stuck with it forever. You can apply for “reconsideration” with your insurer to get a better health classification and therefore get better life insurance premiums.
Health Insurance Companies Can Raise Your Premiums
Although life insurance premiums will change as you age, companies cannot increase your premiums if you suddenly become sick or take on a risky hobby.
Your Employer-Sponsored Life Insurance Policy is Enough
Employers usually offer “group life insurance”. This type of insurance generally doesn’t provide the amount of coverage that most people need.
Insurance Payouts are Taxable
Life insurance payouts are generally income tax-free since it’s not considered inheritance.
Term Life Insurance Policies Can’t Be Converted to a Permanent or Whole Life Insurance Policy
It is possible to convert some term life insurance policies into a permanent life insurance policy. Talk to your insurance provider about which term-life insurance policies can be converted in the future.
Offering Great Insurance Policies Since 1983
American Heritage Insurance is here for all of your insurance needs. Whether you’re looking for a MD life insurance quote or have further questions about life insurance, we’re always standing by ready to help. Contact us today to learn more and to request your free quote.