A lot of people, especially young people, don't think about life insurance. They are too young and energetic to think beyond the next five years - classic Superman complex. And when people do start thinking about life insurance, by that time, they've heard so many facts and myths that it's difficult to know what type of policy to purchase. So, here are some fundamental misconceptions about life insurance that should keep you afloat.
Young Single People Don't Need Life Insurance
Actually, most young single people do need life insurance. Why? No kids, no dependents…who would my life insurance benefit? That would be any family members who are left with your college debts, apartment leases, medical bills, and funeral expenses. These things can add up. Don't leave your family with financial troubles on top of the pain of your loss. That's just not nice.
Homemakers Don't Need Life Insurance
It should only be the breadwinners that need life insurance, right? Not so. Unfortunately, our society highly undervalues the importance of a homemaker. If a stay-at-home parent were to pass away, who would take care of all of their responsibilities? If the breadwinner travels frequently or works long hours, they may need to hire a maid, a nanny, a daycare, a cook, etc. The services a homemaker provides are extremely important. Those duties need to be done – and it may cost. A lot.
My Life Insurance from Work Will Be Enough
Well, it depends. If you are single with no dependents and no debt, it might be enough. But generally speaking, breadwinners who have multiple dependents and a nice mortgage will probably need extra funds to truly protect their family.
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