Investing in life insurance is one of the most beneficial decisions you can make for the future of your legacy. However, many individuals fear life insurance because of some commonly believed misconceptions. On Life Insurance Awareness Month, we want to help educate and empower our clients to safeguard their finances. Therefore, we debunked the most common misconceptions about life insurance we’ve found on the internet and in real-life experiences to help you feel at ease.
Myth 1: Life Insurance is too expensive:
Life Insurance prices fluctuate based on a few different factors, including your age, health, and family history. It is far from a one size fits all approach. You won’t know how much premiums will cost until you receive an individualized quote. Therefore, conduct proper research and speak with professionals before making a preconceived judgment about the price of a life insurance plan.
Myth 2: It is not for young people:
Life insurance offers a higher return on investment if you start investing as early as possible. Therefore, contrary to this commonly believed myth, investing is unquestionably beneficial for young people. Waiting until you are older will result in higher premiums, and therefore, a lower return on investment.
Myth 3: It is not for single people:
Although many investors use life insurance plans to pass on their assets to their families, single people need life insurance too. Any debt you leave behind in addition to your funeral expenses will be the responsibility of your co-signer or closest family member. Therefore, although the return on investment wouldn’t need to be as high as those with large families, it’s still beneficial for single people to invest in life insurance.
Myth 4: It is not available for those with health concerns:
Although finding a suitable life insurance plan is more difficult for older folks and those with health concerns, it’s not impossible. Every insurer has different eligibility requirements and regulations. Contact multiple insurance companies to discuss your circumstances and compare your options.
Our goal this Life Insurance Month is to challenge common misconceptions people hold about life insurance, a beneficial and reliable form of investing. We understand that comparing life insurance plans, insurers, and quotes is lengthy and burdensome. However, investing in your legacy is crucial to ensure you and your family will always be financially sound. This type of peace of mind deserves time and attention. Our certified advisors at U-Vest® are educated and knowledgeable to help you find the right life insurance plan based on your circumstances. Contact us today, and we will help you find the insurance plan that will offer the highest return on your investment.
This article is meant to be general in nature and is not intended, and should not be construed as personal advice of any kind. Please consult your financial advisor prior to making financial decisions. Michael P. Davino, CFP® is a Financial Advisor with U-Vest Financial®, a separate entity from LPL Financial and can be reached at 850.300.7055. Securities and advisory services offered through LPL Financial, a registered investment advisor, Member FINRA/ SIPC.
Investing involves risk including the potential for loss of principal. (9/21)