Top Five Life Insurance Myths Busted

Myth One: A Spouse Has No Need Of Life Insurance
If you have a spouse at home as well as children then they certainly need life insurance. Imagine the money you need to spend at the event of your spouse’s death You need to cover the costs of a multitude of expenses including childcare expenses, transportation, housekeeping, etc., alone. The death of your spouse would result in great financial grief and this is the reason why they need life insurance.

Myth Two: Life insurance is For Everyone
A lot of people think everybody needs life insurance. The truth is that it’s not true. Life insurance is for people who wish to take care of the financial needs of their dependents in the event of their demise. However, if you happen to not have any dependents, there’s just no need to buy a life insurance. The same goes for children and retired people in this group because they do not have anyone depending on their income. It’s true that getting a life insurance is helpful for final expenses but that does not mean it’s for everyone.

Myth Three: Whole Life Insurance or Universal Life Insurance Is The Best Kind Of Life Insurance
Though whole life insurance does give total security as it never expires as long as the insured individual is alive, there are many instances where term life insurance is deemed as most appropriate by a large majority of people. Term life insurance enables an individual to purchase coverage for an imposed number of years where you really need it for. Term insurance also has much lower premiums as opposed to whole life insurance. This allows the insured individual to invest his/her money in other things. On the other hand, if you are the type who is having great difficulty saving up, then universal life insurance is your best bet as it allows you to build up cash value that you may find useful in the future.

Myth Four: The Government Will Cover For My Burial Expenses
The truth is that the U.S. government is only willing to provide your beneficiary a total sum of $255 upon your death for burial expenses. Needless to say, $255 is just not enough to cover every expense because the average funeral costs around $10,000. The bottom line is that it’s not up to the government to plan for the future; it’s entirely up to you.

Myth Five: Life Insurance Are Steep
There’s just no truth to this myth as the cost of term insurance is only pennies per $1,000. Also, do not base your choices on price alone.

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