Top Ten Life Insurance Myths

Here are the top 10 myths when it comes to life insurance policies.

Investing Long Term is Better than Life Insurance

Fact: Nothing could be further from the truth. The recent fluctuations in the stock market should be enough to dispel that notion.

Everyone Needs an ROP Rider

Fact: You need to discuss with an agent or carrier specifically what you need in your policy for you alone. You can request a quote here to get connected with an agent or carrier.

Single People with No Dependents Do Not Need Coverage

Fact: Single people are just as likely to die unexpectedly as married people. And their expenses following death can add up to as much, and perhaps more, than a married person.

Life Insurance Should Only Cover Twice a One-Year Salary

Fact: Chances are that a payout of only 200% of your annual salary will not cover much once you are gone. Remember that upon your death, there will be plenty of bills that need to be paid immediately, which will sap your life insurance payout considerably.

An Employer’s Term Life Policy is All a Person Needs

Fact: For any individual with a family, no. A term life policy paid through a person’s employer will likely fall well short of what is needed to cope with a sudden and unexpected death.

Only Heads of Household Need Coverage

Fact: These days, pretty much every adult in a given family needs life insurance coverage.

Variable Life Policies Trump Traditional Polices

Fact: Sometimes, if you are looking for a high growth policy with the intent to borrow against the cash value. Otherwise, no.

Life Insurance Premiums are Tax Deductible

Fact: No, they are not. The premiums you pay are considered out of pocket expenses, and are not deductible by federal or state tax authorities, unless you are self-employed.

Life Insurance is Required

Fact: Life insurance isn’t a dead-set requirement, but it is a good idea for most people. If you have no debt, no family and are unconcerned with funeral costs, then you do not need life insurance.

Buy Term and Invest the Difference

Fact: This is one of the most popular sayings in the life insurance business. Unfortunately, it is only applicable in a handful of cases. Talk to an agent to determine the best strategy for you.