In More About Term Life Insurance

While term life insurance is typically one of the most straightforward and affordable ways to protect your loved ones financially, many misconceptions cause people to overlook it and its benefits. At Low Cost Life Insurance, we believe in providing you with clear, accurate information, meant to help you make informed decisions. Keep reading while we debunk some of the most common misconceptions about term life insurance.

Myth #1: I Don’t Need Term Life Insurance Because I’m Young and Healthy.

Fact: This is actually the best time to secure your term life insurance policy! Premiums are  lower when you are younger and in good health. Waiting until you “need it” to purchase your policy could mean higher costs or more limited options if any health issues arise.

Myth #2: Term Life Insurance Is Too Expensive.

Fact: Term life insurance is typically more affordable than permanent insurance options like whole or universal life insurance. Term life insurance premiums are designed to fit most budgets which makes it accessible for individuals and families by focusing on the “pure” insurance costs and keeping your life insurance and your investments separate rather than combining them.  This platform is not only less expensive in cost but also provides you with  a higher probability of having a successful retirement…a win/win for consumers. 

Myth #3: Term Life Insurance Doesn’t Provide Enough Coverage.

Fact: Purchasing a term life insurance policy offers you the chance to customize your policy to fit your needs. Whether you just had a baby, are paying off a mortgage, are covering educational expenses and more, you can ensure your loved ones are financially secure if you pass away prematurely.  We generally recommend carrying an amount of life insurance equal to 10x your annual income. 

Myth #4: My Employer-Provided Life Insurance Is Enough.

Fact: Employer-provided life insurance is a great benefit, but the coverage it offers is often limited (typically only one to two times your annual salary, where ten times your salary is recommended). This may not be sufficient to cover any long-term financial needs. Something else to consider is if you change jobs, you may lose all of your coverage if you only have an employer-provided policy; having a personal policy in addition to this policy is a practical option.

Myth #5: It’s Difficult to Qualify for Term Life Insurance.

Fact: The application process for term life insurance is easier than many people think. Depending on your age, overall health and the firm you work with, you may be able to be approved without a medical exam within 24 hours. Even if a medical exam is needed, it is still a very simple process to complete.  

Myth #6: If I Outlive My Term, I’ve Wasted My Money.

Fact: Where term life insurance isn’t used as a financial investment, it is an investment in your peace of mind knowing your premature death will not cause your family any financial hardship.  Outliving your policy means your loved ones didn’t need the financial support it offers—which is a good thing!   In this regard, term life insurance is no different than if you don’t “use” your car insurance, health insurance or homeowners insurance…these are all risk management tools!

Myth #7: Only Breadwinners Need Term Life Insurance.

Fact: Individuals who contribute to the household in non-financial ways, like stay-at-home parents, also need life insurance coverage while their children are young. Their responsibilities often include things like childcare, which can be very expensive if outsourced. Term life insurance ensures your entire family is protected based on the risk your premature death exposes, regardless of income.  

Why Choose Term Life Insurance?

Term life insurance offers straightforward, affordable, flexible coverage for a set period, making it a great choice for someone looking for financial protection for a specific phase of their life. Our team at Low Cost Life Insurance is here to guide you through the process and help you find the best policy for you and your needs.

Protect Your Future Today

Don’t let myths and fears stop you from building a secure financial future for your family. Contact our team today to learn more about how term life insurance can provide the coverage you need at a price you can afford.