Common Misunderstandings About Life Insurance
Posted Scott B. Cooper on Oct 15, 2014 in News
Posted on Oct 15, 2014
There are some things about life insurance that people generally misunderstand. Here are 3 of them and reasons why it is important to have the right coverage.
Once my kids are educated and out of the house there is no need for life insurance. – WRONG
When you are still working, you and your spouse will need to protect the income you rely upon. If you have a mortgage and other debt, having life insurance now and during retirement can help protect you and your spouse, especially in the event of one of your unexpected death.
2. Life insurance is too expensive once you reach yours 50s, even if you are healthy. – WRONG
Rates for life insurance are based mainly upon your age and health, and do typically increase as you get older. However, more people are living to advanced ages and being more active which results in rates being more affordable.
3. I get life insurance form my employer so that is enough. – WRONG
According to The American Council of Life Insurers (2014) a good rule of thumb is to carry coverage that is seven to ten times you annual income. Employer provided coverage generally covers one to two times your annual income, and ends when you leave your job or retire.
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