Important Facts

Four Common Life Insurance Myths

There are common misconceptions about life insurance. We dispel four of them to help you feel more confident when making decisions during the purchasing process.

Dispelling 4 Common Life Insurance Myths

Many people put off buying the life insurance they need because they don't feel knowledgeable enough to make decisions about what they think of as an expensive, complex product.¹

Unfortunately, the subject of life insurance can be confusing, with common myths surrounding coverage, cost, policy types, etc. By clearing up these myths, we hope to help you feel more confident in moving forward with getting the coverage you need - today.

Myth #1: You don't need to buy life insurance when you're young, single, and healthy.

Even though you may not be married or have children or health issues, it often makes sense to get life insurance today to protect your future. For example, the status of your health could change. Buying a life insurance policy when you're young and healthy can help lock you into lower premiums. The younger you are, the more life insurance you can buy at a lower price.

Myth #2: Term insurance is always the best choice.

The kind of life insurance coverage that's best for you depends on your unique circumstances and financial goals. For example, term life insurance can be a good choice if you need temporary coverage for a specific time period (term), such as when you're paying down your mortgage. In contrast, a permanent* policy can provide lifelong protection that accumulates cash value that you can borrow against. Your plan may even include a combination of term and permanent life insurance. So if you need a policy that includes a death benefit and a cash value element, permanent insurance could be a better fit.

Myth #3: Life insurance is expensive.

Today, there are many options for finding affordable life insurance coverage. For some, this may mean starting with an affordable term policy or even a combination of both term and permanent life insurance. For example, if your family needs $500,000 in coverage and can't afford to have it all in a permanent policy, you might consider buying $250,000 of term and $250,000 in a permanent policy. There are also policy riders that can enhance your coverage, allowing you to buy more coverage at a future date without proving your insurability. Ask your agent about riders that may be available on your policy, such as term conversion, accidental death, and child riders.

Myth #4: Insurance companies don't provide coverage for senior citizens.

It's often assumed that life insurance companies stop covering people after a certain age. The fact is, many companies offer policies to seniors. What you need to know is that when calculating your premium, a life insurance company is computing the likelihood of your death over the life of the policy. So if you're a young, active, and healthy senior, you can expect to pay less than someone your age who has significant health issues. Your best bet is to shop around and compare rates.

Summary

With an estimated $15.3 trillion of unmet life insurance need in the United States, most Americans aren't getting the coverage they need.² Don't let the hearsay and myths prevent you from buying a policy. Get the facts and discuss your needs with an insurance professional.

*As long as required premium payments are timely made.



 

1.2013 Insurance Barometer Study
2.“Closing the Insurance Gap: One Household at a Time,” LIMRA, 2012

Was this article helpful?
1
7

Life Insurance Myths

Don't let life insurance myths keep you from purchasing a policy. Life insurance may be more affordable to obtain than you think. This article debunks those myths with facts and statistics that can help make life insurance much easier to understand. For more information, visit our learning center.


All Learning Center articles are general summaries that can be used when considering your financial future at various life stages. The information presented is for educational purposes and is meant to supplement other information specific to your situation. It is not intended as investment advice and does not necessarily represent the opinion of Protective Life or its subsidiaries.

Learning Center articles may describe services and financial products not offered by Protective Life or its subsidiaries. Descriptions of financial products contained in Learning Center articles are not intended to represent those offered by Protective Life or its subsidiaries.

Neither Protective Life nor its representatives offer legal or tax advice. We encourage you to consult with your financial adviser and legal or tax adviser regarding your individual situations before making investment, social security, retirement planning, and tax-related decisions. For information about Protective Life and its products and services, visit www.protective.com.

Companies and organizations linked from Learning Center articles have no affiliation with Protective Life or its subsidiaries.

WEB.1266.01.15