26 June 2014 0 Comments

Misconceptions About Life Insurance (Part 4)

shutterstock_53794111Chances of dying at my young age are slight so I’ll wait until later to get life insurance.

Yes, chances of dying at a young age are slight, but that’s why premiums are so low when you are young.  And…if you also have a young family, this is the time when they need protection the most in the event of your premature death.  It does happen!  And besides, how do you know you will be able to qualify at an advanced age?

I can’t afford life insurance.  We can hardly make ends meet on my take home pay.

It’s a matter of prioritizing.  For starters see what the monthly premium for a 10 year term policy equal to 5 X your annual income would be and I’ll bet it’s no more than a daily stop at Starbucks or dinner out once a week would cost. 

My group insurance at work is enough.

First, how much is enough?  Second, you don’t control your group insurance.  Your employer can decide tomorrow to discontinue the benefit, or you may go to another job that has no life insurance for employees.  Consider group term life insurance as a fortunate supplement to your personal needs, but not the total answer.

I’m better off investing any extra money I have rather than buying life insurance.

Don’t confuse life insurance with investments.  If there is anyone dependent on your future income earning potential, buy life insurance first and then invest.  If you don’t live long enough to fulfill your investment goals, only life insurance will replace your lost earning power.

I have some health issues so I don’t want to apply for life insurance until I get better.

There are some health conditions that will preclude your ability to obtain life insurance that provides immediate protection, so you will have to wait.  But, many ailments will not keep you from qualifying now, possibly even at preferred or standard premiums.  Deal with an agent who has experience in handling life insurance for people with less than pristine health to see if you might qualify for some amount of premium.

Once I’ve been declined or rated up for life insurance it means other companies won’t want to insure me.

Each insurance company uses its own criteria for determining whether they will insure you and in what premium category they will place you.  This determination has nothing to do with what action another insurance company may have taken.

Next…about a promotion I just received offering to insure anyone ages 45-85.  How can that be?

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