Note: This post was originally published on March 20, 2017 and has been updated for clarity and accuracy based on current data.
Life insurance can be confusing. But it doesn’t have to be. At Our Life Covered, we don’t just want to sell you life insurance…we want to help you understand it.
Sometimes the best way to learn the facts is to weed out the fiction, so let’s talk about six common life insurance myths and how they may be contributing to a lack of adequate life insurance coverage among women.
- If my spouse makes more money than I do, I don’t really need life insurance.90% of respondents to the most recent Insurance Barometer study agreed that the primary earner of a household should have life insurance, which is great. However, it’s actually a good idea to have coverage even if your income is lower than your partner’s…even if you’re a stay-at-home parent who doesn’t technically have an income.If you earn a paycheck, no matter what amount it’s for, those funds are part of the budget that funds your lifestyle. And according to the most recent calculation by salary.com, a stay-at-home mom would earn over $162,000 a year if she were paid the market rate for each of the many services she provides her family.Basically, if you weren’t around, it would affect your family financially. Life insurance may help offset some that financial impact, which means that despite an unthinkable loss, life could feel a little less shattered for the people you love.
- I'm single and don’t have kids. Why would I need life insurance?Look, this is a valid question, and it may be true that you don’t need quite as much life insurance if you don’t have any dependents.Unfortunately, death isn’t exactly free…an average American funeral may cost up to $10,000. If you have student loans or other debts, those could also end up on the shoulders of your parents or other loved ones.Consider getting enough life insurance to help cover final expenses and any outstanding debt you’ve accumulated…it’s a pretty amazing thing to do for the people you love.
- I have life insurance through my work. That’s all I need, right?Group life insurance through your employer is a nice perk…it’s convenient, and you get to take advantage of the bulk discount rate. However, group plans typically just don’t offer enough coverage on their own, especially if you have a family.Another drawback is that if you leave the company where you got the life insurance, the life insurance doesn’t come with you. Americans change jobs an average of 12 times between entering the workforce and retiring, so this is a pretty compelling reason to consider individual life insurance as well.
- Life insurance sounds great, but there’s no way I could afford it.There are a lot of different life insurance options, and therefore a lot of different price points. However, data shows that most people overestimate the cost of term life insurance (like the kind we offer at Our Life Covered) by as much as five times what it actually is.In reality, if you’re relatively young and healthy, you may be able to get enough coverage to help protect your family’s financial future for about what you’d pay for a streaming service or a couple of grande lattes.
- It’s better to put money into a savings account than to buy life insurance.You (and maybe your financial advisor) will have to decide what strategy makes the most sense for your unique needs and goals. However, life insurance may be a comparatively inexpensive way to leave a legacy.Let’s say you’re approved for $100,000 of life insurance at a rate of $13/month. As long as you continue to pay your premiums on time, that benefit of $100,000 would be there for your family if you were to pass away, while it could take much longer to accumulate $100,000 if you put $13/month into a savings account.
- Getting life insurance is a long and complicated process…I don’t have time for it.If you think shopping for life insurance always has to be tedious and time-consuming, a quick visit to ourlifecovered.com may change your mind!Our goal is to offer a fast, flexible path to the coverage you’re looking for. You can get a no-obligation quote in seconds, and in some cases, you may even have coverage by the end of the day!We provide the option of a completely clickable life insurance shopping experience, but you can also call us at 888-828-9760, email us at , text us at 636-590-7416, or even live chat directly with one of our non-commissioned agents here.
Ready to ditch the myths and take more control of your family’s financial future? We’re here to help! Join our community on Facebook, Twitter, Instagram, and Pinterest, or send us a message for more life insurance life lessons.