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Life Insurance 101: Don’t Fall For These Myths

Life InsuranceNine out of ten Americans agree that most people need life insurance, yet just 60% of Americans have life insurance*. September is Life Insurance Awareness Month and we want to make sure you are aware of the benefits life insurance can offer.

The three main reasons Americans need life insurance is:

  1. Burial/funeral expenses
  2. Replace lost income
  3. Pay off a mortgage

When it comes to life insurance, the right coverage is best defined by your unique life circumstances. There are two main types of life insurance:

Term Insurance: Considered the most basic policy, term insurance offers protection for a specific period of time, usually 10, 20 or 30 year terms. While term insurance has no cash value, many terms are able to convert to permanent coverage if needed. If you’re interested in term insurance, get a quote in just minutes from Rivermark Insurance Agency.

Permanent Insurance (Whole or Universal): Permanent insurance offers lifelong protection, while accumulating cash value. This is a good option if you want to spend your retirement, but want your successors to have access for final expenses. If you’re interested in permanent insurance, speak with our financial advisor to find the solution that is best for you.

There are a lot of misconceptions about life insurance. We want to make sure you’re educated on the facts, to ensure you can make the right decisions for your family. Here are some myths to avoid.

Myths Not to Fall Trap To:

Life insurance is expensive. There is a misconception that life insurance is expensive, yet it is often half the cost people think it is. Life insurance costs less monthly than cell phone, cable TV, daily coffee stops, and many other basic expenses.

Life insurance is complicated. It doesn’t have to be! Your best bet is to speak with an insurance agent (term) or a financial advisor (permanent). They will help you determine the right coverage for you.

You don’t need life insurance when you’re young. Life insurance is less expensive when you’re young. You never know when your health might change and your premiums could go up. You also have access to living benefits. If you purchase a permanent policy, you may be able to use your cash value to pay for things like student loans or a wedding.

You must choose between term and permanent policies. You may consider a combination of different types of insurance to best fit your circumstance. This calculator may help you determine your needs.  You’ll want to evaluate your coverage and policies with each major life event such as getting married, having children, purchasing property, starting a business, retiring etc.

Thinking your insurance from employer is good enough. Oftentimes, the life insurance provided by your employer is fairly basic. You also run the risk that your employer will stop offering the benefit and you will lose your coverage. Be sure to research options outside of what is provided.

If you have any questions regarding insurance, Rivermark Insurance Agency would be happy to help. Please give us a call at 503.906.9777 or get a free quote online.