Acquiring life insurance is something you may not consider doing until your later years; however, now may be the best time if you are in good health. If you have a family or anyone who depends on you financially, life insurance may be essential to your loved ones’ well being should something unexpected happen to you. Before you purchase life insurance, you should consider some common misconceptions surrounding life insurance protection.
Keep in mind that life insurance is for your loved ones, not necessarily for you, except for peace of mind that knowing that should something happen to you unexpectedly, your family could maintain their current financial life style. Protecting those who depend on you encompasses that and so much more with a life insurance policy in place.
Face the Facts!
Face the facts that before considering life insurance protection, take a look at some of the most common misconceptions that should be addressed and acknowledged.
Life insurance is for older people- Many people think life insurance is strictly for older people, when in fact, anyone who has loved ones dependent on them for financial protection, should have a life insurance policy in place should something unexpected happen to them. Sometimes, life comes with unfortunate situations that can’t be predicted so having protection in place for the financial security for your family/loved ones is essential at any age.
Employer-Provided life insurance is adequate- It is a common misconception that solely depending on your employer life insurance policy is enough. It is recommended you evaluate and document all income, annual expenses, monthly bills, medical costs, education expenses, and estimated funeral expenses to help determine the amount of life insurance that fits your lifestyle and family needs. A rule of thumb calculation for an estimated life insurance amount is 10 to 12 times your annual income, but it is always wise to contact your local N.C. independent insurance agent to request assistance on your recommended amount.
Short-term life insurance is ample because it is more inexpensive than long-term- Short-term coverage is more inexpensive up front, however you may need to focus on long-term protection. If you have children or plan to have children, you must consider the anticipated cost of their college education and consider buying a 20-year plan or even a 30-year plan. Paying a bit more up front ends up saving money in the long run.
A life insurance policy rider provides “needed” protection- Don’t fall into the trap of thinking a policy rider is needed just because it was sold to you by an agent who is on commission. Before paying for a policy rider, make sure you contact your local N.C. independent insurance agent to determine whether it is truly beneficial to you or just an increase in your insurance premium.
Your life insurance policy, once purchased, needs no further acknowledgments- Life happens and when it does, changes may need to be made to your life insurance policy/protection. Failing to routinely inspect your life insurance policy may mean you are paying for something you no longer need OR you may realize you need additional coverage in an effort to ensure adequate protection for loved ones depending on you.
Twin City Insurance understands how important your family and loved ones are to you so we are here to assist with any questions you may have regarding all of your life insurance needs. Call us TODAY at 828-464-2643.