Misconceptions of Life Insurance

September is Life Insurance Awareness Month so what better time to clarify a few misconceptions.

According to LIMRA (Life Insurance and Market Research Association), Life Insurance Ownership in Focus, U.S. Household Trends, there are approximately 37.5 million households in the U.S. that have no life insurance coverage at all. And almost half of households that do have it, don’t have enough to replace their income in the event they needed it.

But why is that? It seems like a no-brainer to have coverage for your family’s financial burdens if something happens to you, right? So why do so many Americans go without?

Lincoln Financial Group’s research shows that the #1 reason people say they don’t have it is because it’s too expensive. But it doesn’t have to be. In some instances, it can cost less than your monthly utility or cell phone bill.

Another LIMRA study showed that about 108 million Americans say that they have coverage through their employer but they may not even know how much or what company it’s with. That won’t do you much good!

Some people may be so intimidated by the process that they just avoid it. However, there are some life insurance policies available now that can be bound within 24 hours with no blood test or medical exam.

Others may think it isn’t necessary if they don’t have children or they aren’t sure who to make the beneficiary, but you can always have multiple people as beneficiaries and it doesn’t have to be a blood relative.

Same goes for those that think because they don’t own a home, life insurance isn’t necessary. That’s a common misunderstanding that we hear often. However, a mortgage isn’t the only financial burden your loved ones could face in your absence.

Stay-at-home Moms tend to think they don’t need coverage because Dad’s income wouldn’t stop if something happened to Mom. Who will care for the kids? Mom was awfully nice to do it for free but it’s highly likely to cost a pretty penny for anyone else to step in.

We think life insurance is extremely important all year round but wanted to share these tidbits to hopefully spread some awareness this month in particular. Make smart choices and don’t let unpaid bills overshadow the legacy you’ll leave when you’re gone.

As always, we’re happy to help guide you on your life insurance journey and can answer questions anytime: 352-371-7977 or nick@mcgriffwilliams.com.

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