I wanted to clarify some misconceptions I often hear about life insurance.
Recognizing these myths and understanding the facts about the critical line of coverage can help you and your loved ones make informed decisions.
Life insurance is only for seniors.
Contrary to popular belief, life insurance is not just for older adults. Regardless of age, having coverage offers peace of mind for your family in unforeseen circumstances. Nearly half of those with life insurance wish they had obtained it sooner.
Only primary wage earners need life insurance.
Recognizing the crucial role of stay-at-home parents (SAHPs) or caregivers is essential, especially when considering the financial realities. For instance, the average cost of a funeral with viewing and burial is $7,848. Child care for an infant averages $321 a week for daycare and $766 a week for a nanny.
The IRS will tax my life insurance benefit.
Fortunately, death benefits from life insurance are not taxable. However, you will have to report and pay taxes on any interest received related to your investment.
Employer-provided coverage is enough.
Employer-provided life insurance may leave you underinsured. Most experts recommend 10x your salary. Remember, employer coverage typically ends when you leave the job, and premiums often skyrocket even if it’s transferable.
Life insurance is too expensive for most budgets.
Over 80% of Americans overestimate the costs of a policy. In reality, premiums can be more affordable than anticipated, with healthy individuals in their 30s paying as little as $170 annually.
Pre-existing conditions make life insurance unattainable.
While health conditions may impact premiums, options for individuals with pre-existing conditions are still available. Don’t assume you can’t get coverage without exploring your options.
If you have any questions or want to discuss life insurance further, please don’t hesitate to let me know. I’m here to help you navigate this important aspect of your financial security.
