There are many prevalent misunderstandings regarding life insurance. Some people are unaware of the importance of the life insurance, when insurance should be bought, and what are the full benefits associated with it. Here are the answers to some of the most common life insurance misconceptions.
Only those who are married or with dependents need insurance
Everyone, single or not, needs enough insurance cover personal debts as well as medical and funeral bills. Surely you have shopped around for health coverage on the new health insurance marketplaces, right? Well you need to shop around for life insurance too in order to ensure you are getting the most bang for your buck, so to speak. If you don’t have insurance, you may leave expenses for your family to struggle with. Plus, you can leave a positive legacy behind by donating the insurance payout to a charity or other cause.
Life insurance provided by my workplace will be sufficient
Not necessarily. If you are single and living modestly, then employer-supplied insurance will perhaps be enough. However, if you married and have dependents, it may not cover all costs, such as estate taxes. Determine if the policy fulfills all of your needs. If not, additional coverage from a company like Pinnacle Life Insurance may be necessary. Also, be wary that some employers may not offer life insurance or could choose during an economic hardship to reduce or remove coverage at any time.
You never need to review your life insurance
Once you’ve purchased life insurance, you can check it off and never look at it again. Incorrect. For one, if you have term insurance, you need to keep an eye on when it expires and decide whether you want to renew or dispose of it. As your life changes and evolves, so does your life insurance. If you have children or purchase a house, these things need to be added to your insurance. Also, you may need to review your beneficiaries. Life changes and unfortunately those who may have been the closest to you years ago are now estranged. Review your insurance policy every few years, preferably annually.
You receive no benefits while living from life insurance
Not true. There are several benefits that life insurance provides to those that are living. You are able to borrow against it or borrow on the policy’s cash value for reasons such a retirement, paying off debt, college tuition, or paying the down payment on a home.