Life insurance can feel confusing, which is why many people delay getting coverage or avoid it altogether. But the truth is, life insurance is one of the simplest ways to help protect your loved ones and your financial future. We’ve debunked a few common myths to help you better understand life insurance.
Myth #1: Life insurance is only for older people
The truth: Life insurance is often more affordable when you’re younger and healthier. For example, the chart below shows a sample rate for a man with $250,000 in life insurance coverage over a 30-year term.
Many people believe life insurance is something to consider as they age, but securing coverage earlier can lock in lower rates and provide long-term financial protection. Should the unexpected happen to a younger person, life insurance can help cover student loans, funeral expenses, or provide financial support to loved ones.
Myth #2: Life insurance is too expensive
The truth: There are affordable and cost-effective life insurance options.
Depending on your age, health, and coverage amount, term life insurance (which is one type of life insurance) can cost less than a monthly streaming subscription. Term life insurance provides coverage for a specific amount of time and is generally more budget friendly because it doesn’t build cash value. Many people overestimate the cost, which causes them to avoid exploring affordable options that may be available.
Myth #3: Stay-at-home parents don’t need life insurance
The truth: Stay-at-home parents provide valuable financial contributions that can be expensive to replace.
While they may not earn a paycheck, stay-at-home parents provide services like childcare, transportation, and household management. Life insurance would help cover the cost of third-party childcare and transportation services if anything were to happen to the stay-at-home parent.
Myth #4: Employer-provided life insurance is enough
The truth: Workplace coverage is often limited and not portable.
Many employer-provided policies offer coverage equal to one or two times your salary, which may not be enough to fully support your family’s needs. Also, this coverage usually ends if you leave your job. An individual policy can provide consistent protection regardless of employment changes.
Myth #5: Life insurance benefits are only available after the unexpected happens
The truth: Some policies offer benefits while you’re living.
Certain life insurance policies include living benefits, which may allow access to funds in the event of a qualifying illness or injury. These benefits can help cover medical expenses, replace income, or reduce financial stress during difficult times.
Life insurance isn’t as complicated as it may seem, and we’re here to help you every step of the way. At South Carolina Federal Insurance Solutions, we are dedicated to helping you find coverage tailored to you and your family. One of our experienced advisors can help you understand what options are available that align with your goals, budget, and lifestyle. Schedule your complimentary life insurance review today to receive clear, personalized guidance and greater peace of mind.
