Chula Vista Life Insurance Agent: Jason Raya Insurance Agency UMC "Life Insurance Myths"
8 Life Insurance Myths Debunked
We'll do anything to protect our loved ones, right? But the decision to buy life insurance is often met with hesitation, confusion or even denial. After all, it's not an easy subject to think about: What would happen iTo get started, read on to learn the truth about eight life insurance myths — it may change your perspective and lead you to make informed decisions about purchasing a policy.
We'll do anything to protect our loved ones, right? But the decision to buy life insurance is often met with hesitation, confusion or even denial. After all, it's not an easy subject to think about: What would happen iTo get started, read on to learn the truth about eight life insurance myths — it may change your perspective and lead you to make informed decisions about purchasing a policy.
MYTH 1: I'M SINGLE, OR MARRIED WITH NO CHILDREN, SO I DON'T NEED LIFE INSURANCE.
Your initial thoughts as a single person or someone married with no dependents is, "Who do I have to take care of when I'm gone?" Life insurance may seem not as important as it does when we have mates and children, but it's still really important. Our passing will be certainly a loss to our loved ones, Life insurance will help them pay off our debts which we incur as couples or families (like some private college loans, co-signed financing arrangements, etc.). A life insurance review helps to get us the financial planning started early so we have longer terms to invest and protect. A very important add benefit is that when we start planning early we helps protect ourselves and loved ones, in trying times, from burdensome expenses.
MYTH 2: I CAN'T AFFORD LIFE INSURANCE.According to the 2015 Insurance Barometer study conducted by Life Happens, 80 percent of consumers misjudge the cost of term life insurance. Life insurance can be very affordable for many people, depending on the coverage you’re looking for. You can start with a policy that fits your budget, and you may be able to purchase additional coverage later on.
MYTH 3: I'M A STAY-AT-HOME PARENT. I DRAW NO INCOME. I DON'T NEED LIFE INSURANCE.
If you're a stay-at-home parent, life insurance is still important. While you may not bring in an actual paycheck for the household, you likely provide services that could cost tens of thousands of dollars to replace each year. These may include child care, daily transportation, home maintenance and cooking, to name a few. If you were to pass away, life insurance may help cover some of these costs.
MYTH 4: I HAVE A LIFE INSURANCE POLICY THROUGH MY JOB. IF I TAKE ANOTHER JOB OR GET LAID OFF, I CAN TAKE THE POLICY WITH ME.
Typically, your employer-offered life insurance policy isn’t portable — meaning if you leave your job, you’re probably also leaving your life insurance protection behind. However, when you buy your own, separate life insurance policy you decide how long you want to be covered. Additionally, with an individual policy, you may be able to get more personalized coverage that fits your financial needs.
YOU CAN COUNT ON A LOCAL Chula Vista AGENT.
Chula Vista Allstate agent Jason Raya of Raya Insurance Agency (USMC) can answer coverage questions and help you find ways to protect what matters most.
Get a Life Insurance ReviewMYTH 5: MY BENEFICIARIES WILL HAVE TO PAY INCOME TAXES ON THE PROCEEDS FROM MY LIFE INSURANCE POLICY.
Your life insurance death benefits are generally income-tax-free and do not have to be reported, according to the International Revenue Service (IRS). Life insurance helps provide your family with income-tax-free money to help pay for a number of things like funeral expenses, a mortgage, or college tuition.
MYTH 6: IF I GET A TERM LIFE INSURANCE POLICY, I CAN'T CONVERT IT TO PERMANENT OR WHOLE LIFE INSURANCE POLICIES.
It is possible to convert some term life insurance policies into a permanent life insurance policy, depending on the policy purchased. However, it's a good idea to speak to your agent up front, as these types of term policies typically must be converted within a specified time period. You also may encounter additional requirements with a convertible term policy, such as increasing premiums.
MYTH 7: I DON'T NEED LIFE INSURANCE ONCE MY CHILDREN ARE ADULTS.
Life insurance can help you in many different stages in your life. Life insurance later in life has a number of advantages, such as helping to relieve the burden of paying for final costs, paying for state estate taxes your heirs may face, paying off any debt you may have left behind, or simply leaving your children with an inheritance.
MYTH 8: I HAVE A COMFORTABLE AMOUNT OF SAVINGS, SO I DON'T NEED LIFE INSURANCE.
While your savings may last through your retirement, have you thought about final expenses? According to the National Funeral Directors Association, the national median cost of a funeral with a burial in 2014 was $7,181. If you don’t have enough money saved, it is possible your loved one won’t be able to pay off final expenses. Keep in mind, if your mortgage has not been paid off, your loved ones may not be able to hold onto your home, if not enough money has been saved.
No matter where you are in life, it's important to help protect your loved ones and your assets with life insurance. If you have any questions, reach out to your local agent.
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This content is for informational purposes only and may not be applicable to all situations.
Life insurance offered through Allstate Life Ins. Co. & Allstate Assurance Co., 3075 Sanders Rd, Northbrook IL 60062; American Heritage Life Ins. Co., 1776 American Heritage Life Dr., Jacksonville FL 32224. In New York, life insurance offered through Allstate Life Insurance Company of New York, Hauppauge NY. ©2018 Allstate Insurance Company, Northbrook, IL.
Securities offered by Personal Financial Representatives through Allstate Financial Services, LLC (LSA Securities in LA and PA). Registered Broker-Dealer. Member FINRA, SIPC. Main Office: 2920 South 84th Street, Lincoln, NE 68506. (877) 525-5727. Check the background of this firm on FINRA's BrokerCheck website.
Life insurance offered through Allstate Life Ins. Co. & Allstate Assurance Co., 3075 Sanders Rd, Northbrook IL 60062; American Heritage Life Ins. Co., 1776 American Heritage Life Dr., Jacksonville FL 32224. In New York, life insurance offered through Allstate Life Insurance Company of New York, Hauppauge NY. ©2018 Allstate Insurance Company, Northbrook, IL.
Securities offered by Personal Financial Representatives through Allstate Financial Services, LLC (LSA Securities in LA and PA). Registered Broker-Dealer. Member FINRA, SIPC. Main Office: 2920 South 84th Street, Lincoln, NE 68506. (877) 525-5727. Check the background of this firm on FINRA's BrokerCheck website.
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