Life Insurance Fact Vs. Life Insurance Myth: 5 Truths to Clarify Coverage

Most know life insurance can help cover the cost of a funeral, but that’s where general understanding stops. And it’s a shame because this type of coverage can save surviving loved ones from a lot of anxiety and debt. As we recognize National Life Insurance Awareness Month, we want to educate clients on coverage basics and dispel some misconceptions associated with it. So, let’s discuss life insurance fact versus life insurance myth.


Life Insurance Myth: Coverage is expensive.


It’s possible to find a life insurance policy with a lower premium. In fact, Term life insurance offers coverage for a set amount of time, and it usually comes with low rates, especially if you’re young and healthy. In fact, you can find rates as low as roughly $20 per month.


Life Insurance Myth: You only need coverage if you have a spouse or dependents.


Coverage offers benefits for nearly everyone—even the young and single. Not only will it help pay for funeral expenses, but it can also cover any debts you may leave behind. You don’t want to burden your loved ones with outstanding loans.


Life Insurance Myth: You can be disqualified from coverage by old age or a pre-existing condition.


Don’t assume that your age or health will bar you from coverage because you have some options. For example, you could still qualify for traditional life insurance, although you may face higher premiums. Or you could opt for a policy that doesn’t require a medical exam. This type of policy often has higher premiums and limited coverage, but some life insurance is better than none.


Life Insurance Myth: You don’t need coverage if you’re a stay-at-home parent.


Life insurance is designed to help cover the loss of a spouse’s income. But coverage is still important for husbands and wives who don’t earn salaries. Stay-at-home parents provide vital domestic services—like cleaning, childcare, and cooking—that their surviving spouses may have to hire out eventually. A life insurance policy will help cover those extra expenses.


Life Insurance Myth: The policy you receive through your employer is the only life insurance you need.


It’s nice when your employee benefits package includes life insurance coverage, but we don’t recommend relying on it. Most company policies offer small amounts of coverage that disappear when you leave your job. You want coverage that provides benefits totaling at least ten times your annual salary, and you want a policy that will last no matter where you’re employed. So, it’s always best to find personal coverage in addition to a policy from your job.


 If you have any questions about a life insurance policy, contact your Hibbs agent today.