Life insurance is for rich people
FALSE! Everyone needs life insurance. Let the insurance company cover the risks, for a small premium. Rich people can actually afford to self-insure, they don’t NEED life insurance. However, even the rich get insurance because they prefer that insurance companies pay for the risks, so they can hold on to their own money.
Life insurance is expensive
If you think $7* per month is expensive, then you’re right.
In a recent survey, 100% of participants thought life insurance is at least twice as expensive as it really is. In reality, since we now live longer the term life insurance rates have dropped significantly in the past 30 years.
* A person age 35 can buy $100,000 term life insurance policy for 10 years, for only $7/month premium, if she’s healthy and not using tobacco. Everyone should at least have enough insurance to cover their mortgage in case something happens.
You have to DIE to get paid
NOT TRUE. Most life insurance policies now include an additional benefit, at no additional cost: ACCELERATED BENEFITS rider, which will pay you a % of the benefit in case you get diagnosed with a terminal illness or have to live in a nursing home facility. Even better, some life policies now have additional riders (some for an extra premium) that will pay benefits if you can’t work due to an accident or illness, even if it’s not a terminal situation.
Life Insurance is hard to get
INCORRECT! Depending on how much life insurance you need, you may not need to have a medical exam done or even show insurability! No blood tests, no urine testing for policies up to $350,000 or $400,000 – depending on which insurance companies you ask.
Term Life is a waste of money
FALSE! Term life is actually a very cheap way to get temporary protection during the vulnerable period of your life when you need it most: when you have a mortgage, having a lower income while you’re younger, have children that are going to school or college. Everyone needs protection, so term is for those who can’t afford a permanent life insurance policy.
If you have heard of other myths you’d like to discuss, please let us know. For any questions, ask the LifeGuy: (239) 466-4466 or email Daniel@LifeGuy.com