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Life insurance gives your family much-needed protection in the event of your premature death. It is a vital resource your survivors and dependents and should be part of your personal financial plan. Unfortunately, there are several common misconceptions about these policies that can prevent people from getting the coverage they need.

4 Myths You Shouldn’t Believe About Life Insurance

1. Your Coverage From Work Is Enough

Many employers offer life insurance to their employees, but it’s rarely sufficient for most families. For example, it may only cover job-related situations but not accidental death outside of work. Most importantly, the payout is usually not high enough to pay outstanding debts or funeral expenses and provide for your family.

2. Only Breadwinners Need Life Insurance

life insurance Lovington NMIn most cases, only a family’s breadwinner has life insurance while the stay-at-home parent does not. However, if the stay-at-home parent passes away, the earning spouse might not be able to pay for child care and household expenses. Life insurance provides a cushion that allows families to regroup and develop a new financial strategy.

3. Life Insurance Is Based on Salary

Employers provide life insurance based on your earnings, but that doesn’t describe your entire financial life. While industry experts often recommend buying enough life insurance to cover a multiple of your annual salary, it’s more important to consider your assets, debts, and expenses to get a more accurate assessment of your coverage requirements. This information will help you determine the right size policy based on your family’s needs.

4. Single People Don’t Need Life Insurance

Life insurance is important when you have a family to support, but even single people should purchase basic coverage. Otherwise, surviving family members including parents and siblings will have to pay for your funeral out of pocket. If you have debts, then your life insurance should cover those as well to avoid putting a financial burden on your family.

 

When you need life insurance to give your family the resources they need, Western States Insurance Group in Lovington, NM, is the team to trust for affordable coverage. They provide a wide range of products and services for clients in Lovington and all of Lea County, including high-quality home and auto insurance to protect your investments. Visit their website to learn more about their services and meet their hometown staff. If you are ready to give your family peace of mind with a life insurance policy, call (575) 396-1318 Ext. 2 for Dawna Walters, our life and health insurance specialist.

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