Think you’re too young or too healthy for life insurance? Then you could be missing out on some serious financial benefits and peace of mind. Misconceptions about life insurance cause all too many Americans to miss out on the additional stability that having coverage can offer. You can stop being one of them, though, by reading through these common myths and related truths.
Life Insurance Can Only Help Those With Families or Nearing Retirement
Too many people tend to believe that they only need life insurance if they have a family or are approaching retirement. In reality, even children can benefit from having a policy taken out in their names. As much as we don’t like thinking about it, death doesn’t discriminate on the basis of age or family status, so it’s helpful to have life insurance to relieve the financial burdens placed on your loved ones. According to Choice Mutual, funeral costs can range from $1,500 to $15,000, so it’s a good idea to get life insurance to cover these costs, regardless of your situation.
Life Insurance Is Unattainable for Those With Pre-Existing Conditions
If you have high blood pressure, heart disease, or any other pre-existing condition, you may think that life insurance is out of your reach. However, you may still be able to find life insurance that will work for you. Some insurance companies are more lenient in extending coverage to those with pre-existing conditions, and many of these conditions are easier to treat than they were before. If you are accepted for coverage, you may or may not have to deal with higher premiums, so do keep this in mind when shopping for a policy. You may also want to consider burial insurance in case you are denied life insurance, or even as a supplement to your life insurance policy.
Life Insurance Coverage Will Fulfill All or Most Estate Planning Needs
While many people underestimate the importance of life insurance, some people actually place too much emphasis on having coverage. While securing life insurance is a crucial step in any estate plan, completing this step alone is not enough to provide financial security and peace of mind for you and your loved ones. Estate planning steps are much more involved; individuals must draft a will, complete medical directives, and take care of a multitude of other tasks to ensure that loved ones are taken care of and that their final wishes are honored by those loved ones. It’s also a good idea to start thinking about hiring a power of attorney should you become incapacitated and unable to make financial decisions on your own. A power of attorney can grant authorization to someone to make those decisions for you. This authorization can include selling stocks, signing tax returns, and accessing bank accounts on your behalf.
Life Insurance Only Provides Benefits to Families and Individuals After Death
The primary and ultimate purpose of life insurance is to establish a financial safety net in the event of an untimely death, but that doesn’t mean that insured individuals can’t use their policy to provide financial security in life as well. In fact, by building cash value in the right life insurance policy, you will be establishing an additional financial cushion to help soften the blow of unexpected expenses, especially if you have less than perfect credit or if you are presented with an investment opportunity that is too good to pass up. You can also use the cash value to pay for other things, like medical bills, college tuition or even retirement, and having access to accelerated benefits can be very helpful for those who are terminally ill and in need of money.
Life insurance is often misunderstood, but it can provide financial benefits to people of all ages and backgrounds. So take these truths to heart and then do some homework, so you can discover all the benefits of coverage and maybe even buy a policy of your own.