Unmasking Life Insurance Myths

Our clients often come to us with?misconceptions about life insurance. Let’s look at six typical life insurance myths and debunk them with facts.

1. Myth:?Life insurance is too expensive

Fact: Over 50% of Americans overestimate the cost of life insurance by 300%

2. Myth:?Life insurance is only for older people

Fact: 72% of Gen Z Americans are likely to own permanent life insurance coverage, the most likely group of the generations. Experiencing the Covid-19 pandemic taught this generation early about the uncertainties in life.

3. Myth:?Life insurance is only for wealthy people

Fact: 42% of American households would struggle financially within months of a wage earner passing away unexpectedly. Anyone at any income level who has people who rely on their income for financial support needs life insurance. Spouses, parents, caretakers, and business owners are just some people that may need life insurance.

4. Myth:?Life Insurance is Only Useful After My Death

Fact:?While life insurance plans are primarily designed to help your business or loved ones,?you can use policies to help save retirement income. The cash value portion of a whole life insurance plan may be able to help complement your existing retirement savings.

5. Myth:?My company provides the life I need

Fact:?Your employer covers you only while you are employed with the company. They cancel the policy once you leave or retire. If your company faces financial troubles, it may even reduce the benefits.

6. Myth:?I am young, single, and healthy, so I don’t need life insurance

Fact:?Life insurance is a product you cannot buy when you need it – you buy life insurance?when you need it. In addition, if you develop a serious condition after you already have life insurance, it won't affect your rates. Your life insurance premium will remain the same for the length of your policy.

Insurance Options

In general, there are different types of life insurance and several ways to tailor policies to meet your?individual needs.?A rider is?an optional coverage or feature you can add to your life insurance policy, often for an additional cost. For example, riders can help you obtain insurance even with pre-existing conditions and critical illness. Inflation riders are standard and designed to the dollar amount of your coverage to keep up with rising costs, such as medical care.

The reasons to buy insurance are different for everyone. But the decision to purchase insurance is, at its core, all about providing financial security for yourself and those you care about.?Don’t let common myths stop you from evaluating your life insurance options. As independent brokers, we are not captive to any one insurance company. We can shop the market to make sure you get the insurance that best fits your needs. Reach out to Strauss Insurance here to learn more.