07/16/2021
Deciding which life insurance policy to purchase or even deciding to get life insurance at all can feel overwhelming, especially when consumers are often influenced by a lot of information, some of which is not based on fact.
You may have heard that life insurance is too expensive or only healthy people qualify, but often these things are not the truth or are only partly true. Here are several life insurance myths:
Myth 1: Life insurance is only for healthy, middle-aged adults.
Fact: You are never too old or too young to purchase life insurance. It’s true that your costs will increase as you age and that people with illnesses or certain risk factors may pay more, but there are life insurance policies available for everyone.
Myth 2: I’m single or married with no children, so I don’t need life insurance.
Fact: Your loved ones can use life insurance benefits to pay off your debts, including student loans, mortgages, and car loans. It can also be used to take care of your final expenses, such as burial.
Myth 3: My student loans will be forgiven when I die, so I don’t need life insurance.
Fact: To keep it simple, it depends on the type of student loans you have. Federal student loan debt is forgiven upon death or total disability, and family members are not responsible for it. In this case, a life insurance payout could go to other things such as living expenses or funeral costs.
Private student loan debt can be different and is not as cut and dry. You’ll need to ask your lender if they provide student loan death forgiveness, which will give you a better estimate of how much life insurance coverage you need.
Brian Zuzick, Gabriela Sime, Life Insurance by Chi, Life Insurance With Care, Life Insurance with Crystal, American Income Life Insurance Company, Zuzick & Associates, Michael Hutchinson, Life Insurance with Paul,
