Oncken Insurance Agency, P.C. Blog
Like children in the playground, most have heard myths about life insurance at least once or twice. Whether talking about eligibility, costs, or benefits, these stories brought a cloud of doubt into signing up for a policy. In this article, we are going to look at some of those stories and separate the facts from the myths.
Myth: Life Insurance Is Not For Everyone
Fact: Everyone Can Use Life Insurance
Let’s start the discussion by addressing the elephant in the room: the need for life insurance. Some think that life insurance is only applicable to the family breadwinner, or for married people with kids. And since they are single, they will not benefit from a life insurance policy.
The truth is everyone needs a form of life insurance. Even if you are single or married but no kids yet, you still have expenses that need settling. College loans, mortgage payments, and also burial costs have to be covered somehow, and life insurance can cover them to a point.
Myth: Life Insurance Is Too Expensive
Fact: A Policy Is More Affordable Than We Think
The possible cost of getting a life insurance policy has scared a lot of potential buyers from signing. Studies show that most consumers overestimate these costs, ranging from $400-$1,000 for a term policy worth $250,000.
Fortunately, life insurance does not have to cost an arm and a leg. Depending on your age and health, policies can go as low as less than $200 per year, or around $15 monthly. And even if you are not at the peak of health, the price will still be a lot less than the overpriced estimations.
Myth: My Job’s Life Insurance Policy Is Good Enough
Fact: That Policy Is More Limited Than You Thought
Some companies offer their employees with life insurance coverage as part of their employment package. While the provided coverage is good in itself, there are several limitations to it that you need to consider.
First off, the coverage amount from the company group policy is based on the employee’s annual salary. Some may double the figure, but the total coverage can still be severely less than a standalone policy. Another limit to the company provided insurance is that it only goes as far as your employment with the company. If you ever get laid off or decide to move elsewhere, the coverage ends there. Some provide an option to continue the plan, but the cost is higher than a regular policy.
These are some of the most common myths you may have fallen for regarding life insurance. Life insurance is not a complicated topic, as the needs depend on the circumstance.
At Oncken Insurance Agency, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays and we're here to help you out. Learn more about our products and services by calling our agency at (281) 256-8310. You can also request a free quote by CLICKING HERE.