Life Insurance - Fact vs Myth

Life Insurance

Can you tell a fact from a myth when it comes to life insurance? Below you will find some of the most common myths people have about life insurance.

I’m not married and I don’t have children, so I don’t need life insurance coverage. Even if you are not married and don’t have children doesn’t mean you don’t need any coverage. Having enough life insurance to at least take care of your final expenses and to cover any personal debt would make sense so you don’t leave your family with this burden.

I can take the cost of my life insurance as a deduction. This is not true as the premiums paid for an individual life insurance policy cannot be deducted on your income taxes. This is because the premiums are paid with after-tax dollars and your beneficiaries will receive the death benefit tax-free.

I have life insurance through work so I don’t need to have any additional life insurance. You may have life insurance through work but is it enough to take care of your family? Some companies offer 1-3 times your salary but depending on the size of your family and your debt situation, this may not be enough. Another thing to think about is if the policy is portable and can be taken with you should you leave the company, get laid off or retire. Having your own life insurance in addition to what your company offers would be the ideal situation.

Only the breadwinners of the family need to have life insurance. Having life insurance for the non breadwinner of the family is just as important as having it on the breadwinner. The cost of replacing all of the services that the non breadwinner did could be pretty costly. These services could include daycare for the children since the homemaker is no longer there; covering the cost for someone to help with the cleaning, shopping etc. It would be helpful to have life insurance to put towards these types of services.

These are just a few myths about life insurance. There are plenty more out there so please contact me so we can discuss what myths you may have heard about life insurance and put those myths to rest.

About the author: Pam Fortier has been in the life insurance business for over 30 years. She also holds both a LUTCF designation and a CISR designation. Pam is adept at helping clients select the coverage they want at the price they can afford. You can contact Pam at 1-800-651-1953 or PFortier@Pivot.com.