Life Insurance: Facts vs Myths

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While many of us understand the value of life insurance, millions of families don’t have enough coverage or any coverage at all. In fact, 41 million Americans think they need life insurance coverage but don’t have it (source: LIMRA, 2020).  Since the COVID-19 pandemic, the interest in life insurance has increased. So, what’s the holdup? Many people are concerned about the cost or whether they qualify.

Since September is Life Insurance Awareness Month, this is a great opportunity to address some common misconceptions about life insurance.

Myth 1: Life insurance is expensive

Fact: Premiums cost less than most people think

According to a LIMRA International survey, cost was the top reason for not getting life insurance. The same survey found that over half of Americans overestimated the cost of coverage by as much as three times the actual cost of Term Life insurance. Especially for young people, life insurance can cost as little as a few cups of coffee.

 

Myth 2: I don’t need life insurance right now 

Fact: Getting life insurance while you’re young can pay off later

Getting life insurance while you’re young and healthy can help you lock in lower rates. Also, even if you’re not the breadwinner, Whole Life insurance can help family members pay for expenses such as childcare. Not sure if now is the right time to buy life insurance? Check out our article on the different life stages when you should get insured.

 

Myth 3: I can’t get life insurance because of my health condition

Fact: Many life insurance policies do not require medical exams

 In most cases, adults can get term life insurance without taking a medical exam* and those between age 50 and 80 automatically qualify for Guaranteed Life Insurance regardless of health.

*Gerber Life Term Life insurance requires a medical exam for those age 51 and over and who apply for more than $100,000 in coverage.

 

Myth 4: I have life insurance through work, so I don’t need more coverage

Fact: Many employer-sponsored policies don’t provide enough coverage

 Most employer-sponsored life insurance policies don’t offer enough benefits and you lose your coverage when you change jobs. Many employers’ life insurance can only offer a fraction of what your family may need which is why a supplemental life insurance policy could be the right choice for you.

 

Myth 5: Getting life insurance is complicated

Fact: You can get coverage online, often in minutes

These days you can go online to get a quote almost instantly and you can get approved for coverage the same day.

 

Questions? Ready to get insured? Call 1-800-704-2180 to speak to a Gerber Life Insurance specialist.

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