Learning from Others’ Mistakes: 4 Most Common Life Insurance Myths Debunked

We are often used to planning, and much of the time, we don’t mind doing so. Yet, many tend to wait around before finally purchasing life insurance – if they do at all. But before you make the decision that life insurance is something you don’t need, it’s vital to clear up the misconceptions.

1. I don’t bring income to my household, so I don’t need life insurance.

Life insurance is not restricted just for household members that bring in all the income or even the main income. If you’re a stay-at-home parent but pass away unexpectedly, for example, your working spouse may need the funds to pay for care for the children or to take time off work while mourning your loss.

That said, you too can benefit from having life insurance. You can find out how much life insurance you may require by using a human life value calculator, regardless of whether you have a personal income or not.

2. I’m too young and healthy to have a need for life insurance.

Perhaps one of the biggest reasons many American adults don’t have life insurance is because they believe they don’t have a need for it based on their current age and health. They think they still have time and that they can opt for life insurance when it is said to be most relevant for them.

But having life insurance isn’t a matter of how young or healthy you are. Instead, see life insurance as a policy that protects you from the unknown. After all, not everyone will pass due to old age or bad health. Plus, buying life insurance while you’re young, in good health, and own less assets can be more affordable.

3. Once my children are adults, I will no longer need life insurance.

Life insurance isn’t something you get just because you have children and get rid of once those children become adults with stable income of their own. Having life insurance can support your family and help them pay off any debts you may still have once you pass.

Additionally, if you leave inheritance for your children through life insurance, this money can be put towards funeral costs and other expenses. Keep your policy is crucial regardless of what changes in your life. Generally, having life insurance can be convenient for your children and other beneficiaries.

4. I can’t afford life insurance. It’s too expensive and not worth it.

A fourth myth of life insurance is that it is isn’t affordable enough and that the “heavy” costs are not worth the benefits of being insured. According to Best Life Rates, millennials of all groups of people are more likely to overestimate the costs of life insurance.

Although, life insurance does not have to be expensive, there are many life insurance policies out that will be within your budget. You can always opt for additional coverage later if necessary. Regardless, having life insurance is incredibly importance to protect your loved ones.

Conclusion

The idea that many believe the above myths of life insurance is a scary thought. Some may think that they are not good candidates for life insurance, that it’s something they will only temporarily require in certain scenarios, or that they won’t be able to afford it. But buying life insurance now is a vital step as nobody knows when they will pass.

About AEGON Life

A joint venture between AEGON – world’s leading financial services and Bennett, Coleman & Company – India’s leading media house, AEGON Life Insurance launched its pan-India operations in July 2008. Armed with a vision to be the most recommended new age life insurance Company, AEGON Life adopts the power of global expertise by leveraging digital platforms to bring transparent solutions, and to prioritize customer needs. Our financial planning and investment solutions include term life insurance plans, pension plans, unit-linked insurance plans (ULIPs), health insurance plans, child education plans, and more.

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