Life Insurance Myths: What You Need to Know

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Life Insurance Myths

Myth 1: Young People Don’t Need Life Insurance

Reality: Life insurance can be more affordable when you’re young and healthy. It can provide financial security for your dependents or settle debts in unforeseen events.

Myth 2: Life Insurance is Too Expensive

Reality: There are various plans available, including term life insurance, which can be surprisingly affordable depending on your age and health.

Myth 3: Single People Without Dependents Don’t Need It

Reality: Life insurance can cover debts and funeral expenses, preventing financial burdens on family members.

Myth 4: My Work Insurance is Sufficient

Reality: Employer-provided life insurance may not meet all your needs and typically ends if you leave the job.

Myth 5: Health Issues Prevent Me from Getting Life Insurance

Reality: While pre-existing conditions can affect premiums, many policies cater to people with health issues.

Common Misconceptions About Life Insurance

Comparing Life Insurance Myths and Realities

MythReality
Young people don’t need life insuranceYoung age often means lower premiums
Life insurance is too expensiveAffordable options like term life are available
Single people without dependents don’t need itCan cover personal debts and funeral expenses
Work insurance is enoughOften insufficient and not portable
Health issues prevent getting life insuranceMany policies available for those with health issues
Debunking The Top 5 Myths About Health Insurance

Conclusion

Understanding and dispelling common life insurance myths is crucial for making informed decisions about your financial security. Life insurance offers a range of benefits, suitable for people in various life stages and health conditions. For personalized advice and to explore your options, contact us today for a free quote.

Need Help Getting Life Insurance Coverage?

If you have a preexisting medical condition and want to buy life insurance, you will need help from an expert. This person can help ensure you get coverage so you don’t get declined.

Warning: Applying for life insurance without a medical exam can be risky. If you have declined coverage, it could take at least two years to get any life insurance.

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Have You Been Declined Life Insurance Coverage Before?

Frequently Asked Questions

What is the major problem with life insurance?

Regarding life insurance, the cost is often a significant deterrent… But Nupur Gambhir, featured in Bloomberg News, Forbes Advisor, and more, will tell you that this type of coverage can be surprisingly attainable. From CNET and Fortune to Slate and The Financial Gym–Nupur’s expertise in end-of-life planning services like Cake has made her an authority on finding affordable rates without compromising quality.

Why do people not buy life insurance?

The price tag attached to life insurance is often the deterrent for many who want coverage but overestimate how much it costs. For those underinsured households, they don’t lack in desire or need; instead, they are deterred by a misconception of cost.

Why do people not invest in life insurance?

There are several reasons someone may not be in the correct position to purchase life insurance, such as an absence of beneficiaries or insufficient funds for monthly premiums. However, even if you don’t have dependents who need financial assistance after your passing, it is still wise to consider investing in life insurance.

What are the five disadvantages of insurance?

Insurance may come with various drawbacks that should be considered before taking out an insurance policy. These include complex terms and conditions; the potential for lengthy, expensive legal procedures; fraud risks associated with some providers; not being accessible to everyone due to high costs or other restrictions; potential criminal activity linked to specific policies’ coverage options and eligibility requirements; increased cost of doing business as premiums rise over time, in addition to additional fees often associated with different plans; and possible gaps between what was promised by the insurer versus what they legally have the right (or responsibility)to provide.

What is the most common reason for owning life insurance?

Life insurance provides unparalleled financial security, allowing you to pay off debts, living expenses, and even medical or funeral costs without worrying. In addition, it’s the most reliable way to protect yourself and your loved ones from any unforeseen events.

What are the three main reasons why many Americans get life insurance?

Americans often purchase life insurance for various reasons, including to secure financial stability during their retirement years, as the cost of coverage typically increases with age. Life insurance can also provide cash resources when there is outstanding debt from mortgages and other expenses that need to be paid off in the event of death or disability. Finally, life insurance provides families with peace of mind knowing they are cared for in case something unexpected arises.

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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