Life insurance is an affordable way to protect your family if you’re no longer there to provide for them. Unfortunately, because it’s a complex topic, many people do not fully understand how life insurance works, and there are a number of misconceptions about it. The information below will clear up some of the biggest myths about life insurance.
4 Misconceptions About Life Insurance
1. It's Expensive
Many people imagine life insurance costs hundreds of dollars a month to get the coverage they need. In fact, it’s a very reasonable price. The average monthly cost of coverage for all ages is under $70.00. For Millennials under age 30, the average cost is closer to $35.00 per month, or less than dinner for two at a nice restaurant.
2. You Only Need Life Insurance If You Have Kids
Although dependents are a big reason many people buy coverage, you still need life insurance even if you’re childless. For instance, if you have a mortgage, student loan, or commercial debt, your estate will be responsible for repaying those amounts, and this could cause trouble for a spouse or other family members. It could require selling the house or other belongings. For this reason, consider buying a whole or term life policy for protection.
3. Employer-Sponsored Plans Are Enough
Most employer-based life insurance plans only provide a death benefit of 1 or 2 times your annual salary. Although this may sound like a nice amount, it won't last long after the cost of final arrangements. It will cover your family's monthly expenses for a while, but it won't pay for college or a mortgage. Eventually, your family will face those costs without your help. Consider purchasing an additional policy through a private insurer to better secure your family's future.
4. You Don't Need Life Insurance When You're Young
It's true that young people are less at risk of dying than older people, but the unexpected does happen. Unexpected health issues and accidents can arise. By purchasing life insurance when you're young, you’ll lock in coverage at a much lower rate.
For assistance choosing a life insurance plan, contact the experts at Allegheny Insurance Services in Elkins, WV. They have served businesses and individuals throughout Randolph County for more than 100 years and represent a wide number of carriers. They can also help you design a home, business, health, or auto insurance policy. Visit their Facebook page to view location details and business hours, learn more about their services online, or call (304) 636-1680 to request an insurance quote.