When it comes time to shop for life insurance, you may be confused by the options you are presented with. If you have been misinformed about life insurance, you may make the wrong decision when choosing your plan. Consider the following myths about life insurance and make a smart choice today.
Myth: You Cannot Be in Bad Health
Many people think that you must be in perfect health to have a life insurance policy. When you apply for your life insurance policy, if you are in good health, you will pay lower rates than someone who is not in good health. You can obtain coverage when you are in bad health, but you should expect your premiums to be much higher than the average policy.
Myth: Life Insurance is Costly
Life insurance is affordable; the average cost of a $250,000 policy for a healthy individual is around $20 a month. Depending on the type of policy you choose, you may have a slightly higher rate than the average plan, but you never have to pay a premium price for life insurance.
Myth: Life Insurance is Only for People with Children
Families who have young children do benefit from life insurance policies, but the above statement is a myth. Everyone can use a life insurance policy. With a life insurance policy, you can choose who you want your dependents to be and your dependents do not have to be your children. Upon your death, the policy can be used to pay for funeral costs, estate fees, and more.
Myth: Life Insurance Money is Only Paid When You Die
While most life insurance policies do pay upon your death, some policies allow you to borrow cash against your policy once you have generated enough cash into the policy. The option to borrow cash against your policy is ideal for anyone who needs extra income for an unexpected expense.
Myth: Life Insurance Rates Fluctuate Too Much
Life insurance policy rates are often fixed for a set amount of time. While you will find a rate increase from time to time with whole life insurance, it is nothing outrageous.
Term life insurance usually allows you to know your monthly rate and the length of time you will be paying on the policy. You can expect not to pay anything higher than your current payments over the given time period.
If you are shopping around for life insurance policies, get multiple quotes so you know what to expect. Weigh your options between term life, whole life, and a universal policy. Once you have found the right plan, it often will go into effect the same day. A life insurance policy can provide security in case of an emergency or death. Don’t sacrifice your family’s financial well-being because of misinformation and belief in the myths above.