What you need to know before buying life insurance

What you need to know before buying life insurance

Our gratitude and thanks go out to our sponsor of this post, USAA, in helping promote life insurance awareness.

Buying life insurance is a major life financial decision. As we wrap up our Life Insurance Awareness month series, it's important to clear up some of the most common misconceptions and myths about life insurance.

Myth #1 about buying life insurance

Everyone should buy term and invest the difference.

That's a great concept if you follow through with it. The reason for insurance will make a difference in what type of insurance you’ll want to purchase. If you have a temporary reason to buy life insurance then you may want to purchase term insurance. There are reasons to buy term and reasons to buy permanent insurance. Determine what your goal is and what you want the insurance to provide and for how long.

Myth #2 about buying life insurance

I’m single and don’t have dependents, so I don’t need it.

You may need less life insurance than someone with a family to support. However, even with no family, someone will be left to pay your final expenses in the event of your death. You may also have debt that needs to be paid off.

Myth #3 about buying life insurance

Life insurance is really expensive.

The good news is that the sooner you buy life insurance the less expensive it is. Buying life insurance while you're younger and most likely healthier goes a long way keeping premium payments down.

Myth #4 about buying life insurance

My health disqualifies me.

Health, weight, and the  use of tobacco do factor into the cost of a policy and what you’re able to get. You have to investigate what’s available to you.Not all life insurance policies are the same. Insurance companies are able to tailor a policy to your specific budget and needs. Check out the USAA's Life Insurance Needs Calculator or another online insurance calculator for estimates of policy costs and benefits.

Myth #5 about buying life insurance

Only the breadwinner needs life insurance.

You may not have a spouse that contributes to the household income. However, consider this; what would it cost you each and every month for child care, as an example? Even if you don't have children you may need outside help in order to maintain the lifestyle that you're accustomed to.

Myth #6 about buying life insurance

You get a better deal if you purchase online.

Price is based on the type and the amount of insurance you buy not necessarily whether or not you buy online. Comparing apples to apples is what’s important when getting prices. Be sure, no matter where you’re shopping for insurance, you’re getting an accurate comparison.

Myth #7 about buying life insurance

Your employer-provided life insurance is all you need.

Having an employer who provides life insurance should be considered a bonus to your privately owned insurance. Employer policies can change or be dropped altogether. You are in control of your personal policy and it does not depend on your employer or employment status.

It has been a pleasure to have JJ Montanaro as my guest this month and my heartfelt thanks go out to him and to USAA for their sponsorship.

Helpful links:

• USAA Life Insurance Landing Page
• USAA Life Insurance Calculator
• Get a Quote
• USAA Life Insurance Graphic – Do I have enough?
• USAA Life Insurance Graphic – Are you protected?
• Don’t Fall for These Four Life Insurance Myths