Debunking the 5 Most Common Misconceptions About Life Insurance

Think life insurance is just for the wealthy, the elderly, or if you have dependents? Think again! At 210 Financial, we’re here to separate fact from fiction by diving into five of the most common misconceptions surrounding life insurance, helping you make informed decisions for your future.  

Learn More: Episode 7: Is Life Insurance Valuable? 

Myth 1: Life insurance is too expensive 

A survey conducted by the Life Insurance Marketing and Research Association revealed that individuals aged 25 to 40 often overestimate the cost of life insurance, believing it to be three times more expensive than it is. Since policy prices vary based on individual circumstances, it’s crucial to compare options. At 210 Financial, we’re here to assist you in finding the policy that fits your budget and lifestyle. 

Myth 2: I only need life insurance if I have children or others who depend on my income

Life insurance isn’t just for people with dependents or those who depend on your income. It can cover financial obligations that you don’t wish to pass along. Life insurance can provide support should you leave behind an inheritance or charitable gift to an individual or non-profit.   

Learn More: Episode 21 of the 210 Retirement Blueprint podcast discusses “Why you need to get serious about life insurance,” Listen now! 

Myth 3: I don’t need life insurance because I have it through my employer  

Having a group life insurance policy through your place of employment is an opportunity you should investigate, but you need to understand its limitations. While it is a great option, it might not cover appropriately. So, remember to research and see if this is a viable option for your financial needs. Here are some good questions to ask or what to look for:   

• What are the limits offered?   

• What are the outlines of the policy? For example, is this an accidental death policy that only pays if you die due to an accident?   

• Can you keep the policy if you quit or change employers?   

Remember to keep you and your beneficiary in mind when researching to ensure you get a policy that works for you.   

Even if you are not employed or working or a stay-at-home parent, it’s still important to consider because it can replace the activities of a stay-at-home parent, including childcare and household work. 

Myth 4: I’m too young or too old for life insurance 

Purchasing life insurance when you’re young may seem unnecessary but it is the best time. The way life insurance works means that the younger you are, the cheaper your premiums will be. It can protect your parents or cosigners on any student or personal loans by paying off those debts if you pass away.  

If you are over 60, life insurance can seem too expensive due to the increased risk of age-related health issues. As a result, insurance companies charge higher premiums for policies. However, it’s still possible to find a policy that offers the best rate for your age range and health classification. 

Myth 5: I don’t need a life insurance policy if I have savings 

Life insurance differs from savings in many ways, but especially when thinking about your loved ones in the event of your passing. It’s important to arrange financial securities for the unexpected to help ensure that your family is taken care of no matter what happens. Life insurance policies can potentially offer more protection and help to ensure that your loved ones are covered in the best way possible.

Conclusion

Life insurance differs from savings in many ways, but especially when thinking about your loved ones in the event of your passing. It’s important to arrange financial securities for the unexpected to help ensure that your family is taken care of no matter what happens. Life insurance policies can potentially offer more protection and help to ensure that your loved ones are covered in the best way possible.

 

210 Wealth Management, Inc., d/b/a 210 Financial, is a federally registered investment adviser under the Investment Advisers Act of 1940. Registration as an investment adviser does not imply a certain level of skill or training. The oral and written communications of an adviser provide you with information about which you determine to hire or retain an adviser. 210 Financial, Form ADV Part 2A & CRS can be obtained by visiting: https://adviserinfo.sec.gov and search for our firm name. Insurance products are offered through 210 Financial, Inc. d/b/a 210 Financial.