“Too expensive.” “Don’t need it at my age.” There are plenty of reasons why people choose not to obtain life insurance. But all too often, the reasons aren’t grounded in truth. In fact, several myths seem to form the basis for why people decide against life insurance.

Let’s see if we can set the record straight by reviewing the facts and myths about life insurance policies:

“Life insurance is too expensive.”

Well, there’s certainly a cost associated with life insurance but like anything else, isn’t the term “expensive” relative? Generally speaking, you can break the cost down to one dollar a day for something like $500,000 worth of coverage1. That means you can provide for your family’s financial security for less than a cup of coffee a day. If you’re the type who likes the crazy whipped specialty java that’s $4.00 out of your pocket every day, you can certainly find affordable life insurance to protect those that matter most to you.

“My health problems mean I can’t get affordable life insurance.”

This belief is definitely false. Not only are there companies willing to sell life insurance policies to people with a range of common medical problems, but some carriers even specialize in high-risk classes. Be truthful upfront about your health and companies will work with you on coverage, even if the costs are a bit more than a person in perfect health.

“I only need my employee provided life plan.”

It’s a nice benefit, but two main reasons should make you rethink this common myth: Time and money. When you’re covered through an employer, you’re covered for a temporary time – the time you’re at that job. And as far as the money or benefits your loved ones would see? It’s usually one times your annual salary, so it’s not exactly peace of mind for yourself or your family.

“I don’t have dependents so I don’t need life insurance.”

The financial burden you may leave behind can extend beyond spouses or dependents. Who would pay for a funeral? Where does the money come from to cover potential debts? These are real-life things to think about when considering whether or not to obtain life insurance.

“Life insurance only helps in the event of my death.”

Using a life insurance policy’s cash value, it’s often possible to get loans and receive financial help for a variety of things, including help with paying for a college education or other monetary needs for yourself or your family. These living benefits are part of a permanent life insurance policy, giving the owner plenty of benefits aside from a payout at the time of death.

There is no one universal answer to whether or not you should get life insurance. It’s a choice to be made based on your situation, and we hope we cleared up some popular myths that keep some people from obtaining their own policy. When it comes to deciding things of this nature, facts are a good thing! Don’t hesitate to give us a shout with questions or if you want to ask about other health-related insurance. Call us 24/7 at (800) 917-4169 to talk to one of our friendly representatives or visit HealthMarkets.com to find a licensed health insurance agent near you.

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References

1 CNN Money’s Ultimate Guide to Retirement, money.cnn.com/retirement/guide/insurance_life.moneymag/index9.htm

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