Do you really need life insurance? Is it too expensive? Are you relying on the coverage you've purchased through work to stay with you forever? If so, you may have fallen prey to some common life insurance myths. But never fear! We're here to clear some things up. Let's take a look.
Myth 1: If you're single or married without children, you don't need life insurance.
Truth: Even if you don't have a spouse or dependents, life insurance is still important. You can use it to leave a legacy or help pay off any debts you owe. The right life insurance policy can help protect your loved ones and support your community long after you're gone.1
Myth 2: Life insurance is too expensive.
Truth: You may be surprised to learn that many life insurance strategies are quite approachable. Starting with a policy that fits your budget can ensure you are protected today, while letting you purchase additional coverage if you need to down the road.2
Myth 3: I have life insurance through my job. If I leave or retire, I'll bring my policy with me.
Truth: Unfortunately, employer-offered life insurance usually isn't portable. So, when you leave your job, you may also be leaving your life insurance behind. By purchasing your own policy, you can take it with you. Another bonus: you may qualify for more personalized coverage.3
Myth 4: My beneficiaries will have to pay income tax on the proceeds from my life insurance policy.
Truth: Proceeds received as a beneficiary aren't generally counted toward gross income. However, any additional interest payments may be taxed. Keep in mind that this article is for informational purposes only. It's not a replacement for real-life advice, so make sure to consult your insurance or tax professional for more information.4
Myth 5: I'm a full-time parent and draw no income. Surely I don't need life insurance.
Truth: As a full-time parent, you provide valuable services that could be expensive to replace. If you pass away, the benefits from a strong life insurance policy may help ensure that your family will continue to receive childcare, transportation, home maintenance, and other necessary supports.5
Myth 6: I'm already retired. It's too late for life insurance.
Truth: Maintaining life insurance post-retirement can be a wise move. Depending on your policy, you may have access to living benefits, which can support you if you need extended care or contract a terminal illness. Life insurance can also be a means of transferring wealth. What kind of legacy do you want to leave behind?6
For more information on life insurance or to see what policy might be right for you, contact us today.