As young couples embark on new milestones like buying their first home or starting a family, ensuring financial security for loved ones becomes paramount. Life insurance plays a crucial role in safeguarding your family’s future, maintaining their standard of living, and preserving your long-term plans.
Here are a few myths about life insurance that are worth researching:
Myth 1: Life insurance is only necessary for primary breadwinners.
It’s a common misconception that life insurance is only for those bringing in the paycheck. However, families with a single income should value the contributions of stay-at-home parents as well. According to an article, the services provided by stay-at-home parents can equate to anywhere from $126,725 to $184,820 annually. Without adequate coverage, these expenses could pose a significant burden to surviving family members.
Myth 2: Savings and investments are sufficient for protection.
While savings and investments are essential, they may not fully cover long-term financial needs like a mortgage or a child’s education. A whole life policy not only provides lifelong protection but also accumulates cash value that can be utilized later in life for various purposes, including major purchases or investments.
Myth 3: Employer-provided life insurance is enough.
Life insurance through an employer often falls short in providing comprehensive coverage tailored to your family’s needs. It typically offers a payout linked to your salary and may not follow you if you change jobs. Having a personal policy ensures that your family is adequately protected, regardless of your employment status.
Explore these additional myths about life insurance:
- My health disqualifies me from coverage.
- Life insurance is only for funeral expenses.
- I’m single without dependents, so I don’t need life insurance.
- Life insurance is too expensive.
If you have any questions or would like to discuss how life insurance fits into your financial plan, contact our office by calling 865-470-8584 or 423-239-6420 to schedule a no-obligation discovery call.