TERM LIFE MISCONCEPTIONS
Most Common Misconceptions About Term Life Insurance
Many people don’t have term life insurance (or enough of it) because they are simply not clear about how the product works and how to purchase it. Doing a little bit of research on your own can help you identify the policy that is most appropriate for you and at the right time. Here are some of the most common misconceptions people have about term life insurance and the truth behind the products.
Misconception #1: A Life Insurance Policy Should Have $100,000/$200,000 in Coverage
If you’re new to the realm of purchasing life insurance, you’ll see that you can easily get quotes for base numbers like $100,000 or $200,000. Depending on your needs, this might help cover your concerns, but you should never get a quote without sitting down to examine your needs first. Conduct a needs analysis to ensure that you are purchasing a policy that actually meshes with what you’d like to provide your family. How long do you want the support to help your family? Will they be able to pay off the mortgage? Are there other special needs you’d like to factor in?
Misconception #2: Term Life Is Only Used For Income Replacement
While many people purchase a term life insurance policy because their primary concern is financial support for family members through income replacement, that is certainly not the only way that the proceeds from a policy could be used. Your term life policy could help pay for educational costs for your children, the payoff of a mortgage, or other expenses that your family might encounter in the event that something happens to you.
Misconception #3: You Should Wait Until You’re Older or Sick to Purchase Term Coverage
Term life insurance is the most affordable kind of life insurance protection out there, and you’re actually better off getting it when you’re young and healthy. If you plan to get coverage for 20 or 30 years, for example, it’s better to lock in the coverage rate when you’re young and don’t have any or many established health issues. Life insurance companies provide quotes for coverage based on your age and health, so it’s definitely in your best interests to strive for the preferred or preferred best rating while you’re younger.
This doesn’t mean that you can’t get coverage when you’re older or after you’ve been diagnosed with a medical concern like diabetes. It does mean that your coverage options will be more expensive and could be more limited, however. You’d be surprised at how affordable term life insurance can be while you’re young and healthy. Locking it in now also gives you incredible peace of mind that your loved ones will be taken care of if something happens to you. Waiting until you have a serious medical condition could knock you out of the running to get a policy at all, so your best time to purchase is before you have a serious medical diagnosis.
Misconception #4: It’s Okay to Skip a Payment and Catch Up Later
Most policies have a grace period that is 30 days or less. If you’ve changed banking information, if a check has bounced, or if you simply forget to send in payment, you need to take care of it immediately. If the grace period passes, your policy could be canceled. To get it reinstated, in some cases you might even have to go through another medical exam. Consider having automatic withdrawals help keep your payments on track or switch to semi-annual or annual payments if it’s easier for you to remember.
Please visit our website at www.termlifeusa.com to download your free buyers guide to term life insurance and also get a free term life insurance quote.
