From life insurance costs, to qualifications, to the various plans, there?s a lot people don?t know about this kind of financial protection. Here are a few of the most common myths surrounding life insurance.
- It?s extremely expensive
In a recent survey, 80% of respondents overestimated the price for a given policy. The truth is, life insurance costs are much lower than most people anticipate. Millennials, in fact, overestimated the price by an average of 213%. When asked to estimate the annual price for a 20-year, $250,000 term policy for a 30-year-old living a healthy lifestyle, Millennials guessed an average of $600. How much does it really cost? The answer is $160 a year.
- There are too many choices
Sure, there is quite a bit of variety when it comes to life insurance, but for most young people, the best choice is pretty straight forward. Experts typically recommend a term life insurance policy for Millennials. You can determine the amount of coverage you want as well as the timespan over which you will be protected. As long as you pay your monthly premium on time, it?s actually very simple. You can even research and purchase a policy entirely online.
- You won?t be able to get life insurance if you have a serious health condition
If you suffer from a medical condition, you absolutely can get life insurance. The only downfall is that your monthly premium will be higher than that of a healthier individual. For example, while we learned above that a healthy 30-year-old can get a 20-year, $250,000 term life insurance policy for just over $13 a month ($160 a year), a 50-year-old man with high cholesterol and a family history of heart disease will probably have to pay closer to $46 a month ($552 a year).
- Life insurance through your employer is good enough
If you?re able to get group life insurance through your job, that?s great. It?s a good benefit to have. However, the payout is likely to be quite low and probably not enough to provide for your family in the event of your death. Additionally, if you lose your job, your life insurance goes with it. To take ensure that your family is covered, it?s best to take out a personal policy.
What other life insurance myths have you come across? Let us know in the comments section below.