4 Myths That Undervalue the Importance of Life Insurance

Posted : June 06, 2017

importance of life insurance

4 Myths That Undervalue the Importance of Life Insurance

When it comes to life insurance there are many misconceptions. Discover the 4 myths that undervalue the importance of life insurance here!

Keyword(s): importance of life insurance

Life insurance is a great way to give you and your loved ones some peace of mind.

In the unfortunate event of premature death, this kind of insurance can protect loved ones from financial harm.

Unfortunately, there are many myths out there that undermine the importance of life insurance. Many people tend to think it's either too expensive, unnecessary, or not for them for a variety of reasons. These kinds of myths can prevent people from protecting their loved ones.

We're gonna look at four of the most popular myths and why they are wrong.

Only Income Providers Need Insurance

One popular assumption is that only the main income provider for a home needs life insurance. This person, often known as a breadwinner, certainly needs life insurance to protect the family.

Other people in the family should also consider this insurance. Many homes have multiple incomes which may not be enough in the unfortunate event of a death in the family.

Even stay-at-home parents can benefit from this insurance since their work and contribution to the family keeps it afloat. Their absence can lead to a financial strain that a single income may not cover.

Employer Life Insurance Is Enough

Some employers actually offer specific forms of life insurance. People may assume that if they have an employer-provided insurance policy, they don't need anything else.

Unfortunately, employer insurance policies can be limited. At the very least, having a policy provided for you prevents you from being able to shop around, compare, and find the best policy for you and your family.

Buying additional life insurance or having just a general plan will let you find the best one that meets your needs.

Life Insurance Is Expensive

Just like with any other insurance, life insurance has monthly premiums that you have to pay. Some people see these premiums as being too expensive to afford or justify.

Thankfully, doing your own research means that you can shop around for the best policy. There are many life insurance providers out there, and with the Internet, you can research to find the best one. 

The importance of life insurance shouldn’t be dictated by expense alone. While it is important to keep your premiums affordable, it is certainly possible to work with most budgets and financial circumstances.

Poor Health Limits Life Insurance

Concerns over health risks are common with many forms of insurance. Life insurance is no exception. Some people worry that pre-existing medical conditions or their current health may disqualify them from life insurance altogether.

While it is true that many providers will require a medical exam or use a list of certain exemptions, this doesn't disqualify you from life insurance. Some providers work with high-risk individuals while others have a list of medical conditions they accept.

Knowing the Importance of Life Insurance

The importance of life insurance shouldn't be understated. Having a way to cover your family and other loved ones in the event of premature death should be a top priority.

Don't let a few myths convince you otherwise. 

Many topics related to money can be confusing, that's why we're here to help. If you want more information, get in touch.