5 Common Insurance Myths & Facts
Myth 1: Life insurance is only for healthy, middle-aged adults.
Fact: You are never too old or too young to purchase life insurance. It’s true that your costs will increase as you age and that people with illnesses or certain risk factors may pay more, but there are life insurance policies available for everyone.
Myth 2: If you have health issues, you cannot get life insurance.
Fact: While health is often used to calculate rates and coverage amounts when determining a policy’s premium, it doesn’t mean that life insurance is out of the question with a pre-existing condition. Even further, there are some policies specifically built for consumers with pre-existing conditions, such as diabetes.
Myth 3: Once my children are adults, I don’t need life insurance.
Fact: Having life insurance later in life has many advantages, like relieving the burden of funeral costs, paying state estate taxes, paying off your debt or simply giving your children a nest egg they can use to help support their own families.
Myth 4: I’m single or married with no children, so I don’t need life insurance.
Fact: Your loved ones can use life insurance benefits to pay off your debts, including student loans, mortgages, and car loans. It can also be used to take care of your final expenses, such as burial.
Myth 5: My beneficiaries will have to pay income taxes on the proceeds of my life insurance policy.
Fact: Life insurance benefits are generally income tax-free up to a certain threshold, according to the Internal Revenue Service (IRS). However, any interest payments on top of the policy may be taxed.
*Life Insurance is available for adults and children. Rates will depend on multiple factors such as, age, gender, smoking status, medical history, health, and others.. This is a hypothetical estimate used for educational purposes only. Data Resources Provided by: https://www.bankrate.com/insurance/life-insurance/life-insurance-statistics/