5 Common Misconceptions About Life Insurance

Despite all happenings in our world, isn’t it ironic that most people know close to nothing about life insurance? The issue is simple: most Americans are either unsure about insurance, uninformed about insurance, or underinsured. If you fall into any of these categories, then you should read on as these misconceptions about life insurance concerns you.

Let’s do a bit of numbers. Do you know that 10.9% of Americans are without insurance? In a research quoted by Investopedia, 60 million American households don’t have proper protection. This scenario is a result of the misconceptions most Americans have above Insurance. 

In this blog post, we’ll address many of these misconceptions about life Insurance and debunk the agelong myths. In our interactions with clients at Tillman Insurance Advisors, we’ve noticed that these beliefs are either inaccurate or nuanced that credit is given. 

Here’s a couple of these myths and misconceptions about life insurance;

1. It’s Expensive

This is the number one misconception about insurance. Thinking that insurance is one unnecessary area that you will be spending your money on monthly. While you may have other household expenses to cater for, you need to put the cost of Insurance in perspective. 

For example, life insurance is overestimated three times the actual cost by most Americans. You need to do away with the thought of a hefty price tag you think insurance carries. Premiums are lower in reality than envisaged. 

To get an accurate figure on premiums, you will need to speak to our experts at Tillman Insurance Advisors.

2. The Young and Healthy Don’t Need Insurance.

Yes, as a youth, the last thing on your mind is mortality or getting ill. However, age is a huge determinant in Insurance. You have a good price entry on your premium as a young person. When you get old and nearing retirement, the premium shoots up. 

When you get to talk to any of our experts at Tillman Insurance Advisors, they will remind you that the cost of Insurance for healthy and young individuals is inexpensive. 

In a 2020 Insurance Barometer Study, 40% of people wish they had purchased insurance early in life? Do you see why you need to let go of this and other misconceptions about insurance? 

3. Savings is Better Than Insurance

No one is disputing the importance of savings, but what happens if you develop a health issue in your 30s? There’s a likelihood that you would not have saved enough at that age. 

Another angle is this, what if you have used up your savings on something else? Maybe on traveling, wedding, or a new house. Don’t be deceived; a huge saving is not a reliable safety net. 

In the event of loss of income and accumulating medical expenses, your savings will deplete exponentially. 

4. Insurance is Not For The Single and Without Dependents

This time its concerns life insurance which many think is for breadwinners. Imagine what will happen to your parents or guardians who signed on your mortgage, student loan, or your first car in the event of your death.

With insurance policies, your can leave your death benefits to those who don’t rely on you financially. 

As a small business owner with partners or employees that depends on the business, you’ll need insurance coverage to keep everyone safe. 

5. There Are Too Many Choices

Yes, we are always lost in the ocean of choices when it comes to buying Insurance. Not if you scale it down to affordability and needs. Today, insurance policies have become customizable, personalized, and bespoke. 

If you are looking for the least expensive insurance options, you’ll also find them. It’s a factor of talking and seeking the opinion of those that genuinely understands Insurance. 

Don’t allow the plethora of options to daze you. Speak to us at Tillman Insurance Advisors, and we’ll get you started on the insurance coverage you need for you and your business.