Starting a conversation about life insurance may not make you the most popular person in the room.
It's not just the "D" word that keeps people from thinking about life insurance, it is also other common misperceptions that prevent many people from getting coverage.
Here are a few beliefs that are worth re-examining:
I have life insurance thru the company I work for.
Employer-based life insurance is helpful but often it is not enough to meet your personal financial goals. Your company life insurance is generally one to two times your annual salary. If you have other people that are financially dependent on you, many experts recommend that your life insurance coverage be five to eight times your annual salary. Also, if your are laid off or stop working with that employer your life insurance coverage may terminate. Having your own life insurance policy will compliment any policies you get from an employer.
I am too young to need life insurance.
When you are young and healthy, you will get the lowest rates.It is a good idea to get a life insurance policy as soon as you can afford to, locking in low rates for as many years as possible.
I have no dependents, so there is no reason for me to buy life insurance.
You may not have anyone dependent on you when you pass away but someone is going to have to deal with burial costs, final needs. Also, if you have a home or valuables you want to leave to a relative, a life insurance policy can help make sure that they can pay off any debts and keep those things in the family.
Only the breadwinner needs coverage.
Spouse who cares for the home may not receive the traditional paycheck but their work is crucial to keeping the home running. Without the homemaker, the surviving spouse will likely have to hire someone for daycare and household chores. To ascertain the life insurance limits for a homemaker, think about everything they do in the house. Add up the cost of hiring someone to do those chores and multiply that total by how many years they would need the help with the children.
I have enough life insurance.
For many people, "enough" means just covering your families everyday needs but also paying off debts and providing for your children's education and future. Life situations change from time to time and your life insurance policy should change with them to keep up with your needs.
We suggest an annual policy review to ensure that your policies reflect any notable changes in your life.