3 Life Insurance Myths -- Busted

29 January 2016 by Elijah Steward

You probably like to cut costs wherever possible, so a life insurance policy may not seem like a worthy investment. This is true for a number of people but the fact is, a life insurance policy can benefit you in a number of ways. Below are three common myths associated with life insurance and the truths behind them.

Myth #1: Life Insurance Is Only for Those with Families

If you're young, single, and just starting out in life, you may assume that life insurance isn't something you need to look into. Life insurance, however, is for individuals of all types.

Even without a spouse and kids, having a life insurance policy in the event of your untimely death could save your family and friends a lot of heartache and anxiety. From funeral costs to paying off your debts, a life insurance plan can provide your loved ones with the financial help they'll need. If you still aren't convinced, it's important to remember that there are low-cost policies available to those with minimal needs and that buying life insurance early in life can help to lock in your rates now while you're still healthy.

Myth #2: I Won't Qualify for Life Insurance Due to Chronic Health Issues

The biggest mistake that people make when considering life insurance is assuming that they won't qualify for it. While it may require a bit more planning and research, there are plenty of life insurance companies willing to work with you.

When finding a life insurance policy that's right for you, it's vital that you disclose all information regarding your illness and overall health. If you're working to keep your illness under control, such as by taking medications or visiting with specialists, this needs to be documented by any potential insurer before they quote you as it can lower your rates significantly. If you do have a chronic illness that's hard to insure, you may consider making certain lifestyle changes to make you a more favorable client, such as quitting smoking and losing weight.

Myth #3: A Savings Account Offers the Same Benefits as a Life Insurance Plan

You simply never know when your time will be up, so while a savings plan may seem like a viable option over a life insurance plan in the long run, it won't do much good if you die before your savings are where they need to be.

You could begin saving today and die tomorrow, and there just won't be enough in your savings account for your loved ones to cover the costs of the funeral and paying off all of your debts. Even if you do have a significant sum to put into savings that would cover everything, there are other benefits you'd be missing out on that life insurance provides. For example, if you have a child heading for college, consider the fact that your savings account will be looked at as an asset, but a life insurance policy would not. A life insurance policy can also offer you the option of cashing in on your policy, either in the form of withdrawals or loans.

To learn more about how you can benefit from life insurance, consult with a life insurance business, such as Colling Insurance Services, Inc. 

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