3 Myths About Life Insurance
Life insurance is a topic clouded with misinformation around how much you need, what it will cover and what it will cost. One of the most common misconceptions: Life insurance is meant for you. While you may be the one paying the premium, life insurance is actually intended for your loved ones, and it can protect them long after you’re gone.
What are some other life insurance “myths?” Let’s break them down:
Myth #1: I’m single. I don’t need life insurance.
Whether you’re married or not, you may leave behind family and friends when you pass away. If you have any debt such as student loans, car loans, a mortgage, etc., someone may be responsible for that debt, potentially your parents or other family members. A life insurance policy can help cover your final expenses and take care of outstanding debts.
Myth #2: The life insurance policy I have through my employer provides enough benefit.
Life insurance policies issued by employers are generally a great benefit, but they are not always enough to protect your family should you pass away. Many companies will offer one to three times an employee’s base salary, but that may not be enough to pay for final expenses, outstanding debts, your mortgage and the loss of future income for your family.
Employer policies are also not guaranteed. If a company goes through hard financial times, the life insurance benefit could be taken away. Also, if you leave the company, you typically can’t take that benefit with you to your next job.
Talking with a professional can help you to fill in the gaps that leave your family vulnerable.
Myth #3: Life insurance is too expensive.
The truth is, life insurance will never be as affordable as it is today. Rates are generally lower when you are younger and in better health, so don’t wait to find a policy.
Certain types of life insurance provide living benefits in addition to a death benefit. These policies may provide cash value that can be borrowed from,* and the money in a life insurance policy will generally grow tax-deferred.
To learn more about types of life insurance and which types may be right for you, visit countryfinancial.com/life.
Life insurance policies issued by COUNTRY Life Insurance Company® and COUNTRY Investors Life Assurance Company®, Bloomington, Illinois.
*Policy loans and withdrawals decrease the cash value and face amount of the policy. The decision to purchase life insurance should be primarily based on a need for the death benefit. Policies are not an investment and are not appropriate as a replacement for retirement savings accumulation.
About the Author: Jason Hammen, Certified Financial Planner, is a product manager for Life/Health/Annuity Product Development at COUNTRY Financial in Bloomington, Illinois.