Life Insurance Myths... Busted
Myths and inaccuracies about life insurance can get in the way of you making a smart and informed decision about life insurance. The professionals at Spectrum Direct are committed to making the purchase of life insurance as smooth and easy as possible. For that reason, we take this opportunity to bust several of the most common myths about life insurance.
Myth 1: Life insurance policies are always expensive.
Actually, life insurance is the most cost-effective way to provide financial security to your family if you die before reaching your life expectancy. This security is delivered in the form of income replacement, elimination of debts such as mortgage payments and car payments, educational funds, payment of final expenses, etc. No other financial tool can accomplish this.
Spectrum Direct provides term life insurance which is the least expensive type of life insurance. For the benefits provided, the cost is actually quite inexpensive.
You may have heard it said that buying life insurance is "betting against yourself". Nothing could be farther from the truth. Here's why: A "bet" is often a risky proposition where you stand to lose quite a bit. Life insurance is a "win-win" proposition. If you live a long and healthy life, you and your family live with the peace of mind and security of knowing that the family's financial needs are protected. Unfortunately, premature death of a breadwinner does happen for some families. In that case, life insurance is there when needed most. Either way, you and your family benefit.
So, in our opinion, life insurance is truly not expensive. The expensive outcome, in terms of financial troubles and emotional impact on the surviving family would actually come about by NOT having life insurance.
Myth 2: My health will not allow me to qualify for a policy.
Life insurance customers are placed in a variety of health categories, ranging from a low-risk "preferred" to high-risk "smoker." A serious illness, such as diabetes, will not necessarily disqualify you from buying a life insurance policy, but it may place you in a somewhat higher-risk category.
Some life insurance companies will not issue policies to individuals with high-risk profiles, but others will—for an extra fee. Also, there are companies that specialize in insuring people with riskier health histories. Be aware, however, that high-risk insurers can also charge more expensive rates for coverage.
If you are in a high-risk category and had difficulty finding a policy the first time you shopped, don't give up. You may simply need to find the insurer who is right for you.
Myth 3: My spouse has a policy, so I don't need one.
The rising cost of living, which includes childcare expenses, has made it necessary for many families to have two incomes. If both spouses contribute to the monthly budget, losing one income will be very stressful for a family. In most cases, both adults in a family should have a life insurance policy. Otherwise, if one parent passes away, the family may be unable to make mortgage payments or pay basic bills.
Even in the case of a single income household, it is often important to provide life insurance on the spouse who does not work outside the home. In the event of the non-working spouse's death, the life insurance proceeds would be used to provide child care to make sure the children in the family are as well taken care of as possible.
Myth 4: I'm single with no dependents, so I don't need a policy.
There are a number of good reasons for a single person who currently has no dependents to own a life insurance policy.
First, because life insurance policies generally cannot be cancelled by the life insurance company once it is issued to you, it's smart to buy when you are younger and without health issues. That way, if you should develop a health condition that would make it expensive or impossible to buy life insurance otherwise, you will already have coverage in place. Think of it as protecting your "insurability".
Second, you may decide to get married and have or adopt children; in which case, you will need life insurance. You might, at some point in the future, be in the position of having to care for aging parents. Life insurance will protect them in the case of your death. Also, you might enter into various types of business arrangements which require you to carry life insurance to protect the financial interests of partners and others who would be at financial risk if you suddenly were no longer in the picture.
Lastly, life insurance for a single person is often needed for the payment of final expenses, debts and funeral costs. Proceeds can also be donated to a favorite charity or alma mater.
Myth 5: Life insurance is difficult to buy.
Gone are the days of flipping through the phone book, spending hours calling company after company to compare policies, then waiting for weeks till a policy is in force. Thanks to the web-based services such as Spectrum Direct, it is now easy and fast to compare rates online and submit an application. Life insurance shoppers can get approved by phone or online.
At Spectrum Direct, our licensed and courteous agents are here to help you through the life insurance application process, answer all your questions and make sure you are making a well-informed and smart decision. We make it easy!
Myth 6: It takes too long to get a life insurance policy.
With Spectrum Direct's state-of-the-art technology, it is faster than ever to get your life insurance policy "in force". We gather most of the necessary information from you on our website and through a short follow-up phone call conducted by one of our professional, licensed agents.
For many applicants, a basic physical exam is scheduled promptly and is completed shortly after your basic application information is submitted to us. Then the application and results of the physical exam are processed. We promise to make these steps as quick and efficient for you as possible.
To be fair, it is important to note that some applications can take a while to process. This is usually because the applicant has health conditions which make it necessary for us to obtain copies of medical records from your doctor; this can sometimes delay the processing of your application.
Myth 7: You have to take a medical exam to get a life insurance policy.
While it is true that some life insurance policies require a medical exam, other policies do not. They're called "instant-issue policies" and are available without a medical exam, as long as you qualify with some basic questions about your health.
We even have a website which permits qualified applicants to purchase life insurance completely online WITHOUT a medical exam and without the need to talk to an agent. This process often takes only minutes to complete: CLICK HERE.
Your free term life insurance quote is just seconds away.
Let a licensed agent provide you with the best rates for your needs.
See for yourself if you have enough coverage to secure the future.
