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  • Writer's picturejimmy ting

6 Myths About Life Insurance

Life insurance is one of the few things we can buy in our lifetime that's exclusively for the benefit of the people we love most. If you pass away, life insurance can help to provide much needed financial support to your loved ones, who might otherwise have to shoulder the cost of your funeral, medical expenses, debt, or other bills.

Life insurance must be bought before it's needed. Here are some common reasons people put off buying it, and why the benefits of life insurance outweighs them all.

1. I Don't Need Life Insurance

Ask yourself this question, "If I passed away, would it have a negative financial impact on my loved ones?" Nearly half of respondents said they would feel the financial impact from the loss of their primary breadwinner in just six months, according to the 2018 Insurance Barometer Study by LIMRA and Life Happens. More than one-third would feel the strain in one month or less. Life Hint: Remember, You Can't Get Life Insurance Once You Need It Most.

It's not just for those with children either. The benefit amount from a life insurance policy (how much money your policy is worth) could help a significant other maintain the lifestyle you led together, or help aging parents afford the care they need.

2. At the End, I Don't Get Anything Tangible From My Purchase

Unlike other things you might buy, you don't obtain life insurance for your own benefit. You buy life insurance as a selfless act, in the hopes of leaving your loved ones in a better place financially than they might have been otherwise.

So it's really an investment into your family's financial future — and your own peace of mind.

What happens if your term life policy ends before you need it? You can always renew it or consider a more permanent (whole) life insurance policy.

There are also some policies that can benefit you during your lifetime, such as erm life policies with "living benefits." These benefits are available to those with qualifying chronic, critical or terminal illnesses and they can help to cover much needed expenses, such as medical bills.

And, if you outlive the term of your policy, isn't that really the best-case scenario anyway?

No amount of money could ever replace having more time with the people you love.

3. I Have Enough Life Insurance Coverage Through Work

Often times, employers provide a base amount of coverage — such as a year's salary — to their employees at no cost. However, that amount alone may not be enough to cover your families' immediate or long-term needs, in the event of your passing.

Additionally, if you left that job for any reason, you may not be able to take your life insurance policy with you. Since your life insurance rate is, in part, based on your age and health at the time of application, you could be paying more the longer you wait to buy it.

As a result, you may want to consider utilizing the free amount of coverage your company covers, and then buying an additional individual life insurance policy that isn't tied to your job.

4. I Have Other Financial Priorities

You have a set income and a number of financial priorities that require a piece of the pie. Most people can relate. In fact, roughly 36 percent of respondents cited other financial priorities as the reason they haven't shopped for life insurance, according to LIMRA's 2017 Individual Life Insurance Consumer Survey.

Fortunately, there are simple ways to make room in almost any budget for life insurance. For example, you might consider reviewing your streaming and media services and cutting back on the ones you're no longer using. Or, if you've got a big family, you might also consider getting a membership to a bulk grocery store, which can save you money on groceries you frequently buy.

The money saved can then be set aside for other necessities, such as life insurance.

5. Life Insurance is Too Expensive

Some people put off buying life insurance because they believe it costs too much. However, when asked to estimate the cost of a $250,000 term life policy for a healthy 30-year-old, nearly half (44%) of millennials overestimated the cost by five times as much.1 In reality, there are affordable life insurance options for almost any budget, such as term life insurance.

Term life insurance allows you to decide how long you need coverage (between 10 to 30 years) and how much coverage you may need. You can even choose one-year increments. So, for example, if you're 12 years away from the day you'll have your mortgage paid off or your child will graduate from college, you can buy a 12-year term life policy.

That flexibility allows you to pay for the coverage you need — nothing more.

6. I Don't Have Time To Do the Research on Life Insurance

You've got limited time and lots of obligations vying for it. And, while you recognize the importance of life insurance, you can't seem to get it to the top of your priority list.

For more information about Life Insurance call JCT Insurance Agency at (626)354-2000 or email

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