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Top Seven Life Insurance Myths

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Life insurance isn’t many people’s favorite topic. For that reason, there are a lot of misconceptions about it out there, which can lead to trouble.


Erik Carter, JD, CFP, wrote a helpful article for Forbes, entitled “7 Myths About Life Insurance.” In it, he breaks down some of the most common misconceptions:



1. The life insurance provided by your employer is plenty

Actually, employer-provided life insurance may not be your best option for three reasons.


First, it may not be enough coverage.


Second, if you lose or leave your job, you may also lose your life insurance.


Finally, depending on your age and health, you may be able to get better coverage on your own.



2. The main breadwinner is the only one who needs life insurance

False. Even if there is a stay-at-home spouse in a family, if something happened to that person, it would still affect the family financially.



3. Life insurance is expensive

A recent Life Happens study showed that this misconception is the main reason behind people not purchasing life insurance, though it also showed that 80% of people overestimate this cost. Contact us to explore just how affordable life insurance can be.



4. Your health problems disqualify you from life insurance

Though your health certainly affects your life insurance options, there are options – even for people with serious conditions.



5. Term life insurance is your best choice

For many, but not all. Saginaw Bay Underwriters is able to help you decide what makes the most sense in your situation.



6. Buying life insurance online gets you a better deal

Nope. According to Marvin H. Feldman, CLU, ChFC, RFC, President and CEO of Life Happens:

The Internet can be a great place to research life insurance and find an agent but you actually pay the same price whether you purchase a policy online or through a human being.


What you don’t get online is the personal service that can help you figure out how much you need, which company is likely to give you the best price based on your health situation, and what the terms on the application mean. A web site may not realize that you need coverage for your whole life due to a child with special needs or that your health won’t qualify you for the rates offered by the lowest price company.


7. You’re young, so you don’t need life insurance

Once again, no. Not only do you need life insurance regardless of your age, premiums are lower when you’re younger and (usually) healthier, making it the ideal time to get it taken care of.


For even more information and to get started on exploring your life insurance needs and options, contact Saginaw Bay Underwriters today.



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