Misconceptions About Life Insurance

There are lots of misconceptions that people have generally regarding life insurance. We will cover a few of them in this article.

You may think you are right because your hero like Dave Ramsey told you so and it makes sense to you.

It may be that you have done your own research and concluded that life insurance is for the birds.

Let me take a moment to go over these five misconceptions most people have about life insurance and why you should rethink your stance.

• I need to earn a lot of money to afford Life Insurance

Too often, life insurance is seen as a luxury reserved for the wealthy. However, the truth is that life insurance is a critical tool for financial security, and anyone who has dependents should consider obtaining coverage. Low-income earners are especially vulnerable to the financial risks of premature death, as they are less likely to have access to employer-provided coverage or other safety nets. By not having life insurance, these individuals are missing out on an important opportunity to create generational wealth.

A life insurance policy can be used to cover final expenses, pay off debts, or fund a child’s education. It can also be used as collateral for a loan or invested to provide long-term financial security. There is no excuse for not having life insurance coverage, and AfriKare Life is committed to helping our clients find the right policy for their needs and budget.

• I have Life Insurance through work.

Another misconception that a lot of people have is that life insurance obtained through work is more than sufficient for them. They forgot that, in this day and age, nothing is guaranteed. People get laid off and even fired all the time. Once you are out of a job, you are out of life insurance coverage.

What would happen if something happened while you are out of a job? You would be left without any life insurance coverage at all! This is why it’s so important to have your own life insurance policy that is not connected to your job in any way. That way, no matter what happens with your employment situation, you will always have life insurance coverage.

• Life Insurance is only useful after death.

It is a myth that life insurance is only useful after death. The truth is, life insurance can be a valuable tool while you are alive. If you were to live till age 90 and stopped working at 60, how would you manage your expenses? Insurance can help you secure your financial future.

There are various options that can help you build a warchest to make you financially independent during retirement, cover exorbitant medical costs, or even provide for your family in the event of your untimely demise. 

• I am single, young and healthy and therefore don’t need Life Insurance.

There is a lot of truth to the saying “it’s better to have it and not need it than to need it and not have it”. I remember during combat in Afghanistan that my squad leader always said this before every mission. We would make sure to take everything we might need because you never know what could happen. Imagine getting into a fire-fight and finding out that you don’t have enough ammunition.

The same goes for life insurance. You cannot buy life insurance when you need it. It is purchased when you don’t need it when you might need it. No one knows when their time will come, so it’s important to be prepared just in case. If something happens and you don’t have life insurance, your loved ones will have to bear the burden financially. 

Don’t wait until it’s too late to get life insurance. If you are young, single and healthy, now is the time to purchase a policy.

It will be much more affordable than if you wait until you are older and/or have health issues. Don’t take the chance of not being covered when you need it most.

Get life insurance today. I promise, you’ll be glad you did. 

• I can get a better buck somewhere than Life insurance

There are some people who believe that they can get better returns on their investment by investing somewhere other than life insurance.

However, there are several reasons why life insurance is actually a better investment than many people realize.

One of the biggest reasons is that there are a lot of risks involved in not having life insurance.

If something happens and you don’t have life insurance, your family will be left to bear the burden financially. 

Another reason why life insurance is a good investment is because it’s actually cheaper when you’re younger.

Many people wait until they’re older to purchase life insurance, but the truth is that it’s actually much more expensive to buy life insurance when you’re older.

This is because your health has a big impact on your life insurance rates.

The older you are, the more likely it is that you’ll have health issues that will impact your life insurance rates.

Hopefully the above reasons are enough for you to reconsider your stance regarding life insurance. Let us know if there is any way we can be of service to you and your family.