Life Insurance is squarely in the adult world but there seems to be an aura of mystery about the details that only the initiated are privy to. No one tells you about it in high school, you don’t get a pamphlet on it with your diploma or marriage certificate and it really shouldn’t be the kind of thing you learn about from your mistakes. To get some clarity on some common misunderstanding about life insurance, keep reading.
LIFE INSURANCE MISCONCEPTIONS
I CAN’T AFFORD IT!
According to a study by Life Happens and LIMRA, 80 percent of people surveyed overestimated the cost of life insurance. “Millennials overestimating the cost by 213%, and Gen Xers overestimating the cost by 119%.” Of course, the more you own and the bigger your family, the more coverage you should have but everyone, even childless young professionals should have life insurance.
I HAVE COVERAGE FROM MY JOB, SO I’M SET
Many people think this, but the average coverage that is offered by employers is twice your annual income. This amount doesn’t include commissions or other income. You don’t have to be an accountant to figure out that if you have a mortgage and a child, twice your yearly salary isn’t going to take your survivors very far.
I’M A STAY-AT-HOME-MOM (DAD), SO I DON’T NEED LIFE INSURANCE
No! If you had to pay someone to do all the many, many tasks that you perform, from childcare to house cleaning, to laundry to errands, the amount of money it would take to replace you would be mind boggling. Just because your contribution doesn’t have a pay stub attached doesn’t mean it isn’t valuable! A life insurance policy helps your family recover from the loss of your person and all the contributions you make to all of their lives.
To learn about more myths surrounding life insurance, check back for our next blog.