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Common Misunderstandings About Life Insurance

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.
  • 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.
  • 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.

If you or a loved one are seriously injured in an Pa. auto accident because the driver of another car or truck was inattentive, drinking, texting or sleeping while driving, contact a car accident lawyer at Schmidt Kramer for help. We can answer any questions or concerns you have about Central Pennsylvania car accidents. The toll-free number is (888) 476-0807 or dial 8 at 717-888-8888 and the case evaluation is free.

Alternatively, you may wish to download a free copy of our book Who Pays the Bills When You Are Injured in an Automobile Accident? for additional information.