Buying life insurance isn’t one of those things many people like to think about; however, it is an investment for those people in your life that depend on you financially. The topic of life insurance is no stranger to myths and misconceptions which is why you may have considered buying it but aren’t quite sure why or what type or what amount. While it may seem complicated, it doesn’t have to be once you are aware of some common myths surrounding life insurance.
Protect Your Loved Ones But Know the Myths Surrounding Life Insurance
Life insurance isn’t really for you; it’s for those you love the most who depend on you financially. If something catastrophic happens to you, leaving a family behind, will they be able to maintain the same lifestyle or will they be in a huge financial bind? There is no better time than NOW to prepare for what could happen in an effort to provide for those loved ones left behind. However, you do need to familiarize yourself with some common misconceptions surrounding life insurance.
- Thinking You Don’t Need Life Insurance or Having Inadequate Insurance
So many times, when discussing life insurance, people simply state they don’t need it. Their reasoning may be because they are young, healthy, or perhaps have a life insurance policy provided by their employer. To many, young and healthy means nothing will happen, and life will continue as is; however, we all know that anything can happen in a minute’s notice that can change lives forever.
As for the life insurance policy provided by the employer, that is great; however, is it enough if something happens to you? When considering how much life insurance a person needs there are many factors to consider such as:
- Yearly Income
- Monthly Bills
- Home/Auto Loans
- Education Costs
- Cost of Living Expenses
- Medical Bills
- Funeral Expenses
Making sure you have adequate life insurance to allow your family/loved ones to maintain their current lifestyle if you die unexpectedly is priceless. If you have questions regarding how much is enough, it is recommended you contact your local Alabama independent insurance agent to discuss your particular financial situation.
- Waiting Until You Are Older
I have heard many people say that life insurance is for the older person who may be in poor health. However, when you are younger and healthier, you may be surprised to find it is a great time to make the investment in life insurance. Buying at a younger age may be more affordable than waiting until you age and have health issues. Term life insurance premiums are actually more costly for older people, so you may want to rethink life insurance at a young age. It is wise to contact your local Alabama independent insurance agent to request a quote today.
- Trying to Save Money With Short Term Coverage
Yes, short term insurance coverage is more affordable on the front end and may be the right fit for many people; however, depending on your family and financial situation, it may end up being more costly down the road. When you consider your life in the future, when it pertains to the number of children and expected college costs, it may be smarter to consider long term life insurance for a 20-year or 30-year plan. Again, many variables are involved, and it is best to sit down with your local Alabama independent insurance agent to determine which type of life insurance plans best fits your specific needs and budget.
- Failing to Routinely Evaluate Your Life Insurance Policy
Buying a life insurance policy doesn’t stop there. As your life changes, so might your life insurance policy needs. Perhaps your salary declines or increases, or your children decide they won’t be going to college or maybe one of them wants to go to law school after 4 years of college. Either way, it is wise to routinely take a look at your life insurance policy and be willing to make adjustments as needed. Your needs 10 years down the road may be quite different than you expected.
Keep in mind that life insurance is an important part of a healthy financial plan for you and your family so that your family won’t be vulnerable to financial ruin should something happen to you. Contact us at Burkett & Associates Insurance Agency at 256-704-7400 with any questions you may have regarding your life insurance needs. You can protect those loved ones who depend on you within a budget you can afford!