4 LIFE INSURANCE MYTHS THAT CAN HURT YOUR FAMILY

Starting a family can be tough, from buying a house, raising children and other endless responsibilities. One of the most often overlooked responsibilities is making sure your family is protected financially in the future. People are more concerned with paying their mortgage/rent than buying a life insurance.

Consider this, if you suddenly die, would your family lose the house? Would your children move to a different school? Would your family maintain the standard of living they are accustomed to? The best way to ensure these things is to get enough life insurance coverage. Unfortunately, there are some myths about life insurance that some families mistakenly heed that can result in financial devastation for loved ones left behind.

MYTH 1. LIFE INSURANCE ARE TOO EXPENSIVE
Nowadays there are a lot of options when it comes to purchasing a life insurance policy and some of them are quite affordable. One of the least expensive is the term life insurance that has a low premium but offers good coverage. A lot of young families find a plan that would fit their needs and budgets.

MYTH 2. LIFE INSURANCE IS ONLY FOR THE BREADWINNER
Most people believed that the main income earner or the breadwinners are the only ones that should be insured. What don’t people realize is that whether you are the only one bringing home the paycheck, or your is the large paycheck or even you don’t earn a paycheck, you need a life insurance coverage. If something happens to the stay at home spouse/parents, the one left behind should get somebody to do her /his work and this can be costly. Good life insurance coverage can provide the funds to cover such expenses.

MYTH 3. I ALREADY HAVE LIFE INSURANCE FROM MY EMPLOYER
Company insurance will stop the moment you depart from the company. This is true for whatever reason it maybe, retirement, resignation or termination. Also, company group insurance may not be enough for your needs.

MYTH 4. I ONLY NEED TERM LIFE INSURANCE
Term life insurance is a great option especially for a young family where the budget is limited. You get your desired coverage at less cost, but this kind of insurance provides protection only for a specific time (“term”).
You must also consider permanent life insurance policies that offer valuable and unique features, which is not present in term insurance like lifelong protection and accumulation of cash values and/or fund values.

 

To know more about life insurance, schedule a FREE and NO OBLIGATION consultation NOW. Email me at billones.arnold@gobrighterlife.com

Disclaimer: This website reflects only the views and opinions of the author and is not part of any official communication tools of any life insurance and investment company. The views and opinions on this website do not necessarily reflect those of the company, the management, the advisor/agents and the employees of any insurance or investment company.

 

Why do I need another Life Insurance even if I have one from my employer?

One of the perks of working in a good company is having benefits of group life insurance coverage, which is great. Everyone who can get life insurance at work should definitely take it, as there are many advantages to company funded life insurance. Some of these are the following:

1. Easy qualification
Enrollment to group life insurance is automatic. This means everyone qualifies with out medical examination. Regardless of medical condition, you can have a life insurance at work.
2. Convenient
The company will do all the documentation. There is not much effort on your part.
3. Cheaper
Employer’s insurance plans tend to be cheaper because, with group plans, cost per individual goes down as the plan enlarges.

These are great advantages but what are the disadvantages of relying on a group insurance alone.

1. Retirement
When you retire you lose your group life insurance coverage. And you lose your insurance when you need it most.
2. When your job situation changes
Regardless of the reason, being laid off or leave the job, you lose your group life insurance from your employer.
3. Employer can change or terminate the coverage
For whatever reason, the employer can do this with out your consent as the contract is between them and the insurer.
4. Limited options
This type of coverage is not tailored fit to your specific needs and may not enough for your needs.

Life insurance first and foremost should meet your specific needs. It is for this reason you should get an individual life insurance policy that you personally own in addition to group insurance that you may have.

Individual insurance offers superior benefits and will remain in place regardless of your employer or employment status.

Individual life insurance policy should fit the purpose for which you purchase it:
1. Income replacement
2. Education expenses
3. Pay off debt and other expenses
4. Medical expenses
5. Retirement
6. Funeral expenses
7. Take care of business
8. Give to charity
9. Pay off estate tax
10. Create a legacy
11. Diversify investment

 

To know more about life insurance, schedule a FREE and NO OBLIGATIONconsultation NOW. Email me at billones.arnold@gobrighterlife.com

Disclaimer: This website reflects only the views and opinions of the author and is not part of any official communication tools of any life insurance and investment company. The views and opinions on this website do not necessarily reflect those of the company, the management, the advisor/agents and the employees of any insurance or investment company.

 

6 MYTHS ABOUT LIFE INSURANCE

Death is not a fun thing to discuss, and this is not the only reason why a lot of people avoid buying life insurance.

There are a lot of misconceptions about life insurance and here are some of the most common myths, along with some facts to help you understand it better.

MYTH 1: LIFE INSURANCE IS EXPENSIVE
A lot of people believed that life insurance is expensive that’s why they don’t want to meet with Financial Advisors. There are a lot of factors that could affect the insurance premiums. Some of them are age, paying years, riders and health conditions. Nowadays insurance policies are more affordable and can be tailor fit to individuals paying capabilities.

MYTH 2: ONLY THE BREADWINNERS NEEDS LIFE INSURANCE
Breadwinners are the priority especially when no one in the family has life insurance yet. However, it doesn’t mean that breadwinners are the only one that needs life insurance. If something happens to the stay at home parents (wife or husband) the breadwinners will have to take responsibility for the work left. This means he/she has to look for a helper that can cause additional expense. The insurance proceeds could help pay for this expense. This can also help the working parents to take a leave and help the family to adjust for their loss.

MYTH 3. EMPLOYER-PROVIDED LIFE INSURANCE IS ALL YOU NEED
Group life insurance is a great benefit, but mostly payout is fairly low. Another consideration is no matter how big your company sponsored life insurance it will end as soon as you leave the company. You should consider buying your own especially when you are younger where the premiums are cheaper.

MYTH 4. HEALTH CONDITIONS CAN DISQUALIFY YOU
Yes, there are certain conditions that can disqualify an individual from getting a life insurance. But it is better to talk to a financial advisor first and verify before jumping into conclusion and preventing yourself from getting one. Nowadays there are insurance policies that cover a range of health conditions. You may also purchase a policy that is not medically written. Just take note that those policies tend to be more expensive and with lower coverage limits.

MYTH 5. TOO YOUNG TO WORRY ABOUT LIFE INSURANCE
It is advisable to get life insurance when you are still young, insurance premiums are cheaper. The longer you wait, it becomes more expensive and at the same time, you might develop a certain condition that can make it much more expensive.

MYTH 6: IF YOU ARE SINGLE YOU DON’T NEED IT
There are a lot of reasons why single should buy a life insurance. Being single doesn’t automatically mean having no child. This is one of the biggest considerations. Another is when you are planning to get married or having aging parents who are dependent on you. Another important consideration- your benefits can pay for your burial expenses so that your loved ones will no longer worry about it. No one wants to think about dying but it is reality and we have to be ready for it.

 

To know more about life insurance, schedule a FREE and NO OBLIGATIONconsultation NOW. Email me at billones.arnold@gobrighterlife.com

Disclaimer: This website reflects only the views and opinions of the author and is not part of any official communication tools of any life insurance and investment company. The views and opinions on this website do not necessarily reflect those of the company, the management, the advisor/agents and the employees of any insurance or investment company.