Despite being prevalent, many people misunderstand life insurance. These errors can keep you from getting the best policy for your needs or discourage you from buying one altogether. Below are a few of the most common mistakes about this insurance so that you can make a smart decision.

Common Misconceptions About Life Insurance

1. Unnecessary for Most

Practically everyone should have a life insurance policy in place. While it protects dependents financially, it also helps loved ones cover your end-of-life medical care and funeral costs. Without life insurance, this debt will pass to someone else.

2. Twice Your Yearly Salary Is Sufficient

If you’re only concerned about paying off bills and covering funeral costs, twice your yearly salary in coverage might be enough. However, if you want to pay off a mortgage or make sure your kids can afford college, you’ll need considerably more. Everyone’s situation is different, so assess your finances when deciding on how much life insurance to buy.

3. Term Life Is Less Expensive

Term life only insures you for a specific term. If you outlive the term, you must renegotiate the price or purchase a permanent plan, which can get expensive. To guarantee you have insurance at the time of death, purchasing permanent coverage while young might be the better option. It will also help you avoid coverage rejection, which is possible when you’re older.

When people in Chillicothe, OH, have questions about life insurance, Hummel & Plum Insurance Agency provides answers. Not only will they help you choose the right life insurance, but they’ll also assist you in setting appropriate coverage limits. These agents can fulfill other insurance needs as well, including auto, home, and flood. Learn more about their services by visiting the website. You can also call (740) 773-1620 to schedule a consultation.