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.

  1. You have to have life insurance at any cost. While in most cases, this is likely true, there are still considerations. People with sizable assets and no dependents or debts may be better off self-insuring. If you’re able to cover medical and funeral costs, life insurance coverage may be optional.
  2. You should always buy term life insurance and invest the difference. This isn’t necessarily an unwavering truth. There are a lot of differences between term and permanent life insurance that you should be aware of. If you know for certain that you need to be covered at death, you should consider permanent coverage.
  3. Variable universal life policies are always superior to other life insurance policies. Many universal policies pay competitive interest rates, and variable universal life (VUL) policies contain several layers of fees relating to both the insurance and securities elements present in the policy. This means that if your variable subaccounts within the policy do not perform well, then as the policyholder may see a lower cash value than someone with a straight universal life policy.
  4. Only the breadwinner of the family needs a life insurance policy. This is absolute nonsense! The cost of replacing the services formerly provided by a deceased homemaker can be higher than you think.