As you can’t exactly speak to anyone that has redeemed their life insurance, sometimes it’s hard to verify the rumors that go around about life insurance. Here are a few myths about life insurance, busted.
Single People Don’t Need It
You may not have any dependents to pass your fortune onto, but your life insurance can cover costs of any debt and funeral bills.
Life Insurance Twice My Annual Salary is Sufficient
This may be enough for some people, but you need a cash flow analysis of your salary and your debt and funeral costs to know for sure just how much money you are going to need.
My Term Life Insurance Coverage
Oftentimes employers will provide term life insurance and sometimes this is enough for the employees. Once again, everyone’s situations are different and some people will need more or less money than others for their life insurance. Know that term life insurance does not usually cover any costs for your spouse and dependent children.
Pay Any Price for Life Insurance
The small one percent of us that have inherited more money than we know what to do with would be better off not paying the insurance and just investing in ourselves. If you are not rolling in the dough as it were but you have no debt to settle and your funeral costs are covered, life insurance may just be an additional and unnecessary expense for you.
If you’re thinking about purchasing life insurance, speak to an expert or agent today to consult.