Fact vs. Fiction: Life Insurance Edition

There are plenty of myths about life insurance and what it covers and how it works, which causes many to avoid it. You are probably thinking about purchasing your first life insurance policy. Alternatively, you probably have a life insurance policy and wish to examine whether you should upgrade, downgrade, or even switch insurers entirely.

Myths About Life Insurance

However, knowing some basic facts about life insurance can help clarify your decision. The field of insurance can sometimes be complex and even confusing, and you may have heard one or more pervasive life insurance myths contributing to the confusion. Fortunately, this quick guide can help dispel certain Life Insurance misconceptions and help you separate fact from fiction. Here’s what you need to know.

Myth: You Don’t Need Life Insurance Until You’re Elderly or Retired

One common misconception is that life insurance is only for the elderly, those who have already retired, or those who know that they are in poor health. However, nothing could be further from the truth. In fact, in some cases, the earlier you secure a life insurance policy, the better. Getting a policy when you’re young or in good health can even help lower your monthly out-of-pocket premiums! It may be an excellent time to get life insurance:

• After you begin working a full-time job
• When you get married
• Deciding to start a family
• When you’re healthy or when you’re diagnosed with a condition
• The moment you get into an accident

Myth: Life Insurance Only Covers Death Benefits, Such as Funeral Expenses

Another persistent life insurance myth is that people can only use the life insurance payout for death benefits. However, many policies allow people to use the payout for various everyday purposes. Some of these purposes could include, but are not limited to:

• Funeral or final expenses
• Medical bills
• Debt you may be carrying, including consumer debt and student debt
• Your family’s regular bills, such as a mortgage or rent payment, groceries, gas, and tuition

Fact: Securing Life Insurance Can Be Affordable and Convenient

Contrary to the popular fiction that securing insurance is pricey and a hassle, you may be able to get life insurance affordably and conveniently. For instance, you could look for:

• A whole or term policy, depending on your preferences
• A payout that meets your family’s financial needs
• A monthly premium that fits your budget
• An insurer that offers customer service that works for your schedule

No matter what stage of life insurance shopping you’re currently in, understanding how to separate common Life Insurance myths from facts can help you make a sound and fully informed decision. Whether you want to purchase a new policy or secure a policy for the first time, it’s essential to know that you don’t need to wait until you’re elderly to get insured. Additionally, know that your policy could cover several necessary expenses for your beneficiaries. Finally, getting insured could be more convenient and affordable than you realize. Review this life insurance guide to identify fact from fiction as you shop.

About Byrnes Agency

At Byrnes Agency, we offer insurance solutions that can be tailored to meet your specific needs. Whether you’re looking for personal policies or commercial coverage, we have the right coverage for you. To learn more about our products, contact us today at one of our two locations.

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