Life Insurance: 4 Things It's Not
Life insurance products are one of those things that most people don't understand very much about. It can seem confusing, and overwhelming to know where to begin. You know that it provides a death benefit, but outside of that, it can sometimes start to feel intimidating. What kind do you need? How much? In reality, you just need to work with an agent who will get rid of the industry lingo, speak in plain english and simplify the process and the products for you.
To get you started on understanding these products, we're going to quickly go through 4 things that life insurance is NOT.
1. Life insurance is NOT a luxury item
When it comes to life insurance, many people mistakenly think it costs a lot more than it actually does, and they assume it's something they can't afford. In a 2019 study done by LifeHappens and LIMRA, consumers (younger people in particular) overestimated the cost of life insurance by as much as 5 times! Protecting the financial security of your family is not a luxury, it's a necessity. And you just might be surprised at how affordable it can be.
2. Life insurance is NOT just about covering funeral services
When most people hear the words life insurance, they automatically think "death benefit". This is because for decades, this is how these policies were marketed to the public. In reality, these are powerhouse products that have the capabilities of solving so many problems for you. Sure, they are excellent at providing the funds to cover funeral and burial costs, but that's not all they can do. Did you know it can be an excellent way to create wealth, start a business, replace lost income, pay off a mortgage, cover long term care expenses, cover costs for your business, ensure your kids can pay for college, maximize a pension, supplement your retirement income, and so much more.
3. Life insurance through your employer is generally NOT enough
Many people assume that the life insurance coverage that their employer offers them as part of their benefits package is probably enough for what they need. This couldn't be farther from the truth for multiple reasons. Yes, policies through your employer are a great thing to have, especially if it's at no cost to you. But it should never be the only coverage that you have. Want to know more about why your life insurance policy through your employer should never be the only coverage you have? Click here for more information.
4. Life insurance is NOT just for super healthy people
Yes, your health is one of the factors that determines how much you pay for life insurance and if you can even get it at all. But don't be so quick to assume that just because you have a health condition that you won't be able to get coverage in place. What you want to do in this situation is work with an agent who has experience with hard to place cases. They know the steps that need to be taken to give you the best shot possible at getting the coverage that you want and need in place. There's a certain way that the process needs to be approached, and when this doesn't happen, that's when you can find the whole thing being a huge headache of a mess for you. So don't assume that you can't get coverage. You just might be surprised what the right agent can accomplish for you.
The bottom line is this . . . when you are looking into getting life insurance in place, an experienced agent is your best friend. They will sit down with you at no cost to go over your needs and questions, and they will walk you through the process, taking the guess work out of it. Let them show you what these products can do for you. Leverage their knowledge, experience, and relationships to get the best customized solution in place for you and your family.
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