Life insurance is an excellent way to protect your family’s financial future in the event you pass away. With the right combination of benefits, a life insurance policy can pay for your funeral costs and medical expenses. It can even cover your family’s bills.
Options like whole life insurance policies have options for building wealth and tax-advantaged structures. However, there are still a lot of misconceptions about life insurance that might deter you from buying into it.
Medical Profiles dispels the most common misunderstandings about life insurance below.
Myth #1: Young, Single, and Healthy People Don’t Need Life Insurance
The trick with life insurance, like any kind of coverage, is that you can’t buy it after you need it. You may be young and healthy right now, but unfortunately, that can change in an instant.
Did you know that life insurance is much more affordable to buy when you’re young? The risk is lower, which reflects in your premiums. So, buying a policy now could help you lock in a good premium and save money in the long run!
Myth #2: Life Insurance Only Covers Your Funeral Costs
Lots of people imagine that life insurance payouts only cover funeral or death-related costs. However, this is not true—beneficiaries can use life insurance benefits for many different reasons, such as:
- Mortgages
- College
- Medical bills and more
With a whole life insurance policy, you can also use life insurance for investment purposes.
Myth #3: Life Insurance Will Be Expensive Month to Month
One of the most persistent common misconceptions about life insurance is that it is prohibitively expensive. However, life insurance can be extremely affordable.
For example, in 2024, the average cost of a $250,000 20-year term life insurance policy for a 40-year-old man and woman was just $19 per month and $16 per month, respectively. That’s it!
Myth #4: You Can’t Get Life Insurance Due to a Certain Medical Condition
While a pre-existing medical condition can make it a little harder to get life insurance coverage, your condition or medical history will not automatically disqualify you from getting coverage. You can still get the coverage you need. However, the monthly premiums might be higher to cover your insurer’s risk.
Still, there are also other options. Why not consider simplified and guaranteed life insurance options that have fewer or zero health eligibility terms and conditions?
Myth #5: You Are a Stay-At-Home Parent and Don’t Need Life Insurance
Isn’t life insurance only for those who make a steady income? No. Although stay-at-home parents don’t get a salary for doing their jobs, they do a lot of work to keep the house running and obviate the need to pay for housekeeping or childcare.
Are you a stay-at-home parent? Does your spouse work? A life insurance policy could be essential to cover the costs for any non-compensated work that you perform each day.
Myth #6: You Have Life Insurance Through Work, So You Don’t Need Another Policy
Lastly, many employers offer some kind of life insurance coverage, but this only lasts as long as you work at the company. The company can also cancel any benefits of the policy as its financial situation fluctuates.
Typically, employer-sponsored policies also have lower death benefits and may not cover all of your loved ones’ expenses if you pass away. Why not consider an additional term of permanent life insurance policy to pick up the difference?
Get Medical Testing for Life Insurance Today!
Now that we have dispelled some common misconceptions about life insurance, you might be ready to take the next step. In that case, let Medical Profiles take the stress out of the initial paramedical exams and make your life insurance application a little easier. Message online or call today at (832) 251-3926!
