Term Life Insurance Myths

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Posted on 13th October 2010 by Rita in Life Insurance |TERM Life Insurance

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Term Life Insurance Myths

Are you one the skeptics when it come to Life Insurance? I truly believe if you are, you don’t know what is true and what is not. Here are a few common term life insurance misconceptions…

Myth No. 1: I’m single and don’t have any dependents, I don’t need any life insurance coverage. Even single people need at least enough life insurance to cover the costs of final expenses, which can include personal debts, medical and funeral bills. If uninsured you may be leaving unpaid expenses for your family or executor of your estate to deal with. (“Life Insurance for Single Adults. Is it needed?”)

Myth No. 2: Only young and healthy people can get coverage. Not so. Young and healthy people will generally pay less for the life insurance, but that does not mean they are the only ones who are able to get it. The fact is, many life insurance companies have underwriting guidelines in place to accommodate those with some health issues. Yes rates are cheaper for the young and healthy crowd, but term rates are near record lows – almost anyone can find affordable life insurance coverage.

Myth No. 3: Only the breadwinner needs to have life insurance coverage. Complete nonsense. The cost of replacing the services formerly provided by a deceased homemaker can be much higher than you may think. Once you think about it… this makes complete sense. Homemaker duties may include: Child care, Chef/Meal duties and Maid service. These are just a few… but add up what this would cost you to higher someone to do and then you will see the benefit of the life insurance coverage. And don’t forget you may also need Counselor/Grief service for the family. These few things add up very fast.

Myth No. 4: My term life insurance from my employer is sufficient. Maybe, Maybe not. You will need to review your employer sponsored policy and see if it covers what you need it to. Coverage amount may be minimal, of course this will vary from employer to employer. Does the policy meet all your needs? Most of these type of policies are not customized to your needs. The policy may not be portable… If you start working for another employer you may not have the option to take the policy with you. (review more: “7 things you need to know about employer sponsored life insurance“).

Note: This blog is designed for general information purposes only. All information presented on this site should not be interpreted as legal advice and the author assumes no responsibility or liability for the actions taken or not taken by the readers based upon such information. For legal and tax advice contact your attorney or tax adviser.

Rita Sollie, Direct Insurance Representative with North Coast Life Insurance Company (NCL). No gimmicks or schemes here, just genuine and honest service. We don’t sell insurance, we solve problems. I welcome the opportunity to show you what NCL can do for your Life Insurance and Financial needs.
View INSTANT Term-Life Quote: www.insureyourfamily.com
If you prefer to speak with a local financial representative, call or email your request and you will be connected with a representative in your area.
Contact info: Phone: 800.541.5858 Email: rita.sollie@nclife.com or Live Chat below.

  1. Why Plan Ahead? « North Coast Life Insurance says:

    [...] Term Life Insurance Myths [...]

    13th October 2010 at 12:07 pm

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