When it comes to family and loved ones, it’s always better to be safe than sorry. Life has a way of throwing curve balls when least expected—sometimes they’re good, sometimes they’re bad. This is exactly why families should always be prepared for the worst, but hope for the best. In preparing for the worst, life insurance is the way to create a safety net for a family.
While many people choose to forgo this dreary discussion due to their lack of understanding or uneasiness of approaching such a gloomy subject, it’s one that can save a home and a family from reaching the depths of poverty.
As a team member with National Agents Alliance, it’s important to know of and be able to properly dispel misundertandings concerning life insurance for your clients. To help clear up some of these items and help consumers to better understand life insurance, LifeHealthPro.com has dispelled some common misconceptions surrounding this valuable asset. See if you know these and how to handle them:
Misconception: Maintenance is not required.
This isn’t something you purchase then file away in the cabinet until you need it years later. It is something that needs to be evaluated and updated as life begins to change. For example, a husband and wife in their early 20s will need to update their policy as they begin having children and purchase a house.
Misconception: Life insurance is only for those who are married with children.
This is not true. In fact, many young single and savvy people start their financial plans early on and choose products that will pay dividends later on. In fact, whole life insurance policies appreciate over time, so it may make financial sense to invest in a life insurance policy now. The premiums are likely lower, as opposed to later in life when the costs go up and don’t have the same value as an older policy.
Misconception: There are no financial benefits for the living.
Whole life insurance offers many benefits that can help those who are still living. With whole life you have the option to borrow against it, borrow on the policy’s cash value for retirement needs, use as a down payment on a first home, pay college tuition or pay down debt.
Misconception: Employers will make sure employees are covered.
Life insurance isn’t always a perk that an employer provides their employees. Even if your employer does include life insurance in your benefits package, that could change over time. Economic circumstances could force an employer to reduce coverage or eliminate plans altogether, which could create gaps in coverage. It’s always a good idea to have your own policy to ensure that all the bases are covered.