Tuesday, April 24, 2018

Five Life Insurance Myths

Courtesy of: Protective Life

Life insurance can be a complex subject, and just about everyone has an opinion about who does and doesn't need it, how much to buy, and what types of policies are best.

For this reason, we're listing the top five myths about life insurance and an explanation for why that myth might not be true. We hope this information will provide insights that can help you, help your prospects/clients decide what's right for them.

Myth 1: Life insurance through work is really all you need.
Having life insurance through work is good, but many employer-sponsored plans offer small term or accidental death policies with low limits. Moreover, these policies are not typically portable, so if your prospects/clients leave their company or get laid off they'll be left without coverage and will need to apply for a new policy based on their current age and health status.

It's important to know their policy limits because what they have through work may not be enough. Securing life insurance independent of what they have at work that can lock them into a lower rate and you won't have to worry about losing coverage if you they are changing jobs.

Myth 2: If you're single or young you don't need life insurance.
Even if your prospects/clients have no dependents, they'll still have funeral expenses that their family will need to pay when they die. They might also get married and start a family at a later date and will need to provide financial support for their spouse and dependent children.

Buying life insurance while they're young can lock them into lower rates.

Myth 3: Only the breadwinner of the family needs life insurance.
A stay-at-home spouse may not earn an income, but think of all he or she does to keep the household running: child care, meal preparation, transportation, housekeeping, and more. With that spouse gone, life suddenly gets a lot more challenging - and expensive.

The cost of replacing the services provided by a stay-at-home spouse can be higher than they think. Life insurance can help defray the cost of hiring help to accommodate a new lifestyle in their partner's absence.

Myth 4: You don't need to review your coverage.
Life insurance isn't a set-it-and-forget-it proposition. Every significant life event - marriage, a new baby, divorce, buying a house, retirement planning- should prompt your prospects/clients to double-check their coverage.

Even if they've had no big changes, it's smart to review their policy every few years to ensure that they're keeping pace with inflation and still getting the best value for their premium dollars.

Myth 5: You're better off investing your money rather than buying life insurance.
Your prospects/clients are taking a big chance when they depend solely on their investments to take care of their family. If they die without coverage, there may be no means to provide for them after their assets are depleted.

Don't bank on their assets being enough. Establishing a life insurance policy outside their investments ensure that their family has enough readily available cash when they die.

These are just a few of the misunderstandings about life insurance. Help your clients know the facts and don't let the myths stop them from choosing the right coverage. To get more helpful information about types of life insurance and how they can meet your clients needs, contact Partners Advantage at 888-251-5525, Ext. 700.

You can view the original article post on Protective Life's Learning Center website:

This material is intended for educational purposes only. You should not treat any opinion expressed as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of opinion and experiences. Partners Advantage does not warrant or guarantee the accuracy or completeness of the information contained herein.
A Life insurance is a complex subject that is easily misunderstood. Many times people look to friends or relatives for advice about life insurance and with that increases the chance for myths to be taken as fact. This article highlights a few common myths that are commonly accepted as fact. Don't let misinformation keep you from gaining the understanding you need to make informed decisions about your life insurance coverage needs. For more information, visit our learning center.

All Learning Center articles are general summaries that can be used when considering your financial future at various life stages. The information presented is for educational purposes and is meant to supplement other information specific to your situation. It is not intended as investment advice and does not necessarily represent the opinion of Protective Life or its subsidiaries.

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