When it comes to buying life insurance, you may be confused by the options presented to you. If you’ve been misinformed about life insurance, you may make a poor decision when choosing your plan. Consider the following myths about life insurance and make a smart choice today.
Myth: You can’t be unhealthy
Many people think you have to be in perfect health to buy a life insurance policy. When you apply for your life insurance policy, if you are in good health, you will pay lower rates than someone who is not in good health. You can get coverage if you are in poor health, but you should expect your premiums to be much higher than an average policy.
Myth: Life insurance is expensive
Life insurance is affordable; the average cost of a $250,000 policy for a healthy person is about $20 per month. Depending on the type of policy you choose, the rate may be slightly higher than the average plan, but you will never have to pay full price for life insurance.
Myth: Life insurance is only for people with children
Families with young children do benefit from life insurance policies, but the above statement is a myth. Anyone can use a life insurance policy. With a life insurance policy, you can choose who your dependents will be, and they do not have to be your children. When you die, the policy can be used to pay for funeral expenses, estate expenses, and more.
Myth: Life insurance money only pays out when you die
While most life insurance policies are paid out upon your death, some policies allow you to borrow funds from your policy once you have generated enough funds in the policy. The ability to borrow against your policy is ideal for anyone who needs extra income to meet an unexpected expense.