Understand what your life insurance can do for you.
While most adults understand that they should have life insurance, many put off securing this coverage for a variety of reasons. One major reason is because of common misconceptions. To ensure that you don’t have the wrong idea about life insurance coverage, here are some of the things it is not.
- Life Insurance is NOT a Luxury
Many people do not get life insurance because they assume that it is very expensive. However, studies have shown that the average American overestimates the cost of life insurance—assuming it is three times more expensive than it is in actuality. This means that there’s a good chance that life insurance is actually far cheaper than you ever imagined. So, even if money is tight, you should still shop for quotes. You may be surprised by how affordable it is to protect your family’s financial future.
- Employer-Offered Life Insurance Coverage is NOT Adequate
Many employers offer life insurance benefits to their staff. While this is a nice perk, many people make the mistake of assuming that this employer-offered coverage is enough. Unfortunately, this is far from the case. For starters, financial experts recommend securing life insurance coverage worth at least seven times your annual salary. As employer-offered life insurance policies only offer about two times your yearly salary, this coverage is far from adequate. Additionally, when you rely solely on life insurance through work, you risk losing your coverage if you switch jobs or get fired. Rather than relying on this insufficient and potentially risky coverage, you should secure a personal life insurance policy where you can choose your coverage amount and term length. Your employer-offered life insurance should be treated as a supplement to your policy, but nothing more.
- Life Insurance is NOT Just for Funeral Expenses
Many people have the misconception that life insurance is designed to pay for funeral and burial expenses. While it’s true that your life insurance benefit can be used to cover these costs, this is not the only thing your coverage can do. Your life insurance can be used to pay off your debts, replace your income, keep up with recurring financial responsibilities, and take care of routine costs. Additionally, you can use your life insurance to fund your children’s future education, give back to charity, protect your business, and so much more.
This is what you should know about life insurance coverage. Do you need help securing life insurance? If so, then contact the experts at Patterson & Associates in Richardson, Texas. Our dedicated team is eager to assist you with all your coverage needs today.