There are many myths and misconceptions about insurance. The life insurance industry is no exception. These myths have been around for years. They'll likely continue for years to come, too. Once you know about them, you can make the right choice when you buy life insurance for yourself.
Myth #1: Single or child-free people do not need life insurance.
It's true that people in this demographic can get by with less life insurance than a couple with kids. But they still need it. You should, at minimum, have enough life insurance to cover your final expenses. Final expenses include funeral and burial costs. Then your family doesn't have to suffer the financial burden in addition to the emotional one.
Myth #2: Only old people need life insurance.
Everyone hopes to live a full life and pass on peacefully at an advanced age. Reality is, this doesn't always happen. Anyone can die at any age. A 30-year-old single mom needs it as much as an 85-year-old grandmother.
Myth #3: I'll increase the likelihood of early death by buying life insurance now.
This is such a strange myth. Think about that travel insurance policy you bought for your trip to Europe. You didn't so much as have a delayed flight. What about the warranty on your television? It didn't have any issue until a year after the warranty expired.
While you hope to not have to use those consumer policies, they provide peace of mind. It's the same with life insurance. You hope to be around for years to come, but in case you aren't, it lets you sleep well.
Myth #4: Only people with jobs need life insurance.
Life insurance is sometimes referred to as income replacement insurance. This leads people to think that those who aren't in the paid workforce don't need it. This is not true.
No matter why a person isn't collecting a paycheck, they provide economic value. Those who have partners and kids do a lot of the cooking, shopping, housework and child care. In the event of their passing, family will need to cover that lost value. Life insurance can help with those costs.
Myth #5: I need twice my annual income in coverage.
This is typically the amount that an employer-purchased plan offers. That's helpful. But you also need your own policy that's not tied to an employer. A common rule of thumb is to carry 10 to 12 times your annual income. This might even allow your family to invest the lump sum and live off the interest. People who aren't employed should get at least $500,000 in coverage. Now that you're aware of the myths out there, it's time to put them aside and get the right policy for your needs.
Need life insurance? Call Synergy Insurance Service at 405.702.0930. We can help you get an affordable Oklahoma City life insurance policy.