Five Life Insurance Myths

Courtesy of: Protective Life

Life insurance can be a complex subject, and just about everyone has an opinion about who does and doesn't need it, how much to buy, and what types of policies are best.

For this reason, we're listing the top five myths about life insurance and an explanation for why that myth might not be true. We hope this information will provide insights that can help you, help your prospects/clients decide what's right for them.

Myth 1: Life insurance through work is really all you need.
Having life insurance through work is good, but many employer-sponsored plans offer small term or accidental death policies with low limits. Moreover, these policies are not typically portable, so if your prospects/clients leave their company or get laid off they'll be left without coverage and will need to apply for a new policy based on their current age and health status.

It's important to know their policy limits because what they have through work may not be enough. Securing life insurance independent of what they have at work that can lock them into a lower rate and you won't have to worry about losing coverage if you they are changing jobs.

Myth 2: If you're single or young you don't need life insurance.
Even if your prospects/clients have no dependents, they'll still have funeral expenses that their family will need to pay when they die. They might also get married and start a family at a later date and will need to provide financial support for their spouse and dependent children.

Buying life insurance while they're young can lock them into lower rates.

Myth 3: Only the breadwinner of the family needs life insurance.
A stay-at-home spouse may not earn an income, but think of all he or she does to keep the household running: child care, meal preparation, transportation, housekeeping, and more. With that spouse gone, life suddenly gets a lot more challenging - and expensive.

The cost of replacing the services provided by a stay-at-home spouse can be higher than they think. Life insurance can help defray the cost of hiring help to accommodate a new lifestyle in their partner's absence.

Myth 4: You don't need to review your coverage.
Life insurance isn't a set-it-and-forget-it proposition. Every significant life event - marriage, a new baby, divorce, buying a house, retirement planning- should prompt your prospects/clients to double-check their coverage.

Even if they've had no big changes, it's smart to review their policy every few years to ensure that they're keeping pace with inflation and still getting the best value for their premium dollars.

Myth 5: You're better off investing your money rather than buying life insurance.
Your prospects/clients are taking a big chance when they depend solely on their investments to take care of their family. If they die without coverage, there may be no means to provide for them after their assets are depleted.

Don't bank on their assets being enough. Establishing a life insurance policy outside their investments ensure that their family has enough readily available cash when they die.

These are just a few of the misunderstandings about life insurance. Help your clients know the facts and don't let the myths stop them from choosing the right coverage. To get more helpful information about types of life insurance and how they can meet your clients needs, contact Partners Advantage at 888-251-5525, Ext. 700.

You can view the original article post on Protective Life's Learning Center website: https://www.protective.com/learning-center/life-insurance/five-life-insurance-myths/

This material is intended for educational purposes only. You should not treat any opinion expressed as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of opinion and experiences. Partners Advantage does not warrant or guarantee the accuracy or completeness of the information contained herein.
A Life insurance is a complex subject that is easily misunderstood. Many times people look to friends or relatives for advice about life insurance and with that increases the chance for myths to be taken as fact. This article highlights a few common myths that are commonly accepted as fact. Don't let misinformation keep you from gaining the understanding you need to make informed decisions about your life insurance coverage needs. For more information, visit our learning center.

All Learning Center articles are general summaries that can be used when considering your financial future at various life stages. The information presented is for educational purposes and is meant to supplement other information specific to your situation. It is not intended as investment advice and does not necessarily represent the opinion of Protective Life or its subsidiaries.

Learning Center articles may describe services and financial products not offered by Protective Life or its subsidiaries. Descriptions of financial products contained in Learning Center articles are not intended to represent those offered by Protective Life or its subsidiaries.

Neither Protective Life nor its representatives offer legal or tax advice. We encourage you to consult with your financial adviser and legal or tax adviser regarding your individual situations before making investment, social security, retirement planning, and tax-related decisions. For information about Protective Life and its products and services, visit www.protective.com.

Companies and organizations linked from Learning Center articles have no affiliation with Protective Life or its subsidiaries.


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Why Is Life Insurance Important?

Courtesy of: Protective Life

The value of life insurance cannot be overstated. Life insurance offers protection for your prospects/clients family and home in the event of their death. Help prevent financial hardship for your clients' loved ones with life insurance.

Some people may think of life insurance as just another expense. The question your prospects/clients need to consider is would someone in their life suffer an economic hardship if they were to die? If the answer is yes, then life insurance is important for them to have.

Married with children
If your prospects/clients are married and have young children at home who depend on their income, they have a clear need for life insurance. If they were to die, the loss of your client's income could cause an immediate financial hardship. Not only would this make it harder for their family to make ends meet, but for them to realize future goals such as a college education. Even if one spouse is a stay at home parent and doesn't bring in a formal paycheck, his or her death means that the surviving spouse will have additional expenses such as child care, cooking, and housekeeping - all necessary services for running a household.

Married without children or singles
Why is life insurance important if your clients' don't have children or a spouse? Just because they don't have children or are married, doesn't necessarily mean that they don't need life insurance. If their spouse or significant other depends on your client's income to keep the bills paid and to run the household together as a joint venture, then having the financial safety net of a life insurance policy is vital. And whether they're married or living the single life, who is going to pay the costs associated with their final expenses? Things such as funeral costs and jointly held debt (such as a cosigner on a loan) are just a few of the costs that they'll need to consider in the event your clients were to unexpectedly die. Unless they already have sufficient financial resources to cover these expenses, their survivors will most likely need life insurance to help pay for it all.

Having enough life insurance is just as important
The loss of a loved one is an emotional and traumatic experience for any family. But not having enough money to meet immediate and ongoing living expenses, can make a very difficult situation even worse. Not only are the people your clients loved grieving their loss, but they'll now have added financial stresses to cope with. Depending on their current financial resources and ability to get back on their feet both emotionally and financially, their loved ones could be forced to move to a less expensive home or community, forego education and career plans, and cut back on their quality of life. They may be even forced to take out loans to pay for your funeral and burial costs, as well as any outstanding medical or tax bills.

If your clients are still wondering why life insurance is important, stop them to consider the potentially devastating consequences of not having coverage to financially protect the people that they love.

Learn more about the life insurance resources available to you and your clients. If you have potential clients, Partners Advantage can guide you thru the life insurance process and can let you know which carrier would best meet for your clients' needs. Call us at 888-251-5525, Ext. 700.

You can view the original article post on Protective Life's Learning Center website:  https://www.protective.com/learning-center/life-101/why-get-life-insurance/why-is-life-insurance-important/

This material is intended for educational purposes only. You should not treat any opinion expressed as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of opinion and experiences. Partners Advantage does not warrant or guarantee the accuracy or completeness of the information contained herein. 

All Learning Center articles are general summaries that can be used when considering your financial future at various life stages. The information presented is for educational purposes and is meant to supplement other information specific to your situation. It is not intended as investment advice and does not necessarily represent the opinion of Protective Life or its subsidiaries.

Learning Center articles may describe services and financial products not offered by Protective Life or its subsidiaries. Descriptions of financial products contained in Learning Center articles are not intended to represent those offered by Protective Life or its subsidiaries.

Neither Protective Life nor its representatives offer legal or tax advice. We encourage you to consult with your financial adviser and legal or tax adviser regarding your individual situations before making investment, social security, retirement planning, and tax-related decisions. For information about Protective Life and its products and services, visit www.protective.com.

Companies and organizations linked from Learning Center articles have no affiliation with Protective Life or its subsidiaries.


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