In our last blog, we spoke about a few common Fort Collins life insurance myths. At Security Insurance Group, we want to make sure that you know the truth and the real facts when it comes to life insurance. Today we’re covering a few more life insurance myths to shine light on the truth once and for all.
MORE LIFE INSURANCE MYTHS THAT YOU SHOULDN’T BELIEVE
- I don’t need coverage because I’m single and I don’t have dependents. This one is very false! Every single person needs at least enough life insurance to cover the costs of their personal debts, medical, and funeral bills. If you’re uninsured, you may end up leading a legacy of unpaid debts for your family to deal with.
- You only need a life insurance policy that is twice your annual salary. This is another false assumption! The reality is that the amount of life insurance each person needs depends on their specific and very individual situation – just just a number. In fact, there are many factors to consider and we can help you with that.
- Your term life insurance at work is sufficient. While sometimes this is true, it is again very specific to the individual person. If you’re a single person with modest means, employer-paid coverage may actually be enough. However, if you have dependents or a spouse, or you may have estate taxes after your death, you may want to consider additional coverage to lessen the burden after your passing.
- Your premiums cost will be deductible. In most cases, this isn’t true. You’ll never be able to deduct the cost of your personal life insurance unless you’re self-employed and your coverage isn’t used as asset protection for the business owner.