When it comes to life insurance, there can be a lot ofconfusion. For many, it’s a financial product that is complex, emotional, and it’s importance, misunderstood. But the truth is that life insurance is one of the simplest, most valuable and cost-effective financial products you can access. It’s also one of the most important. When we talk to our clients about life insurance there are several objections we hear again and again. These are often based on myths. Myths that can stop you protecting your family and ensuring you have a secure financial plan in place for peace of mind. In this article we are going to put the record straight about the most common life myths!
Myth #1: I’m young and healthy so I don’t needlife insurance.
Reality: The best time to buy life insurance is before you think you need it.
Life insurance premiums are based on a range of factors which include age and health. The younger and healthier you are, the lower your premium will be. Waiting until you're older or after a health issue arise can make coverage much more expensive, or even inaccessible. Life insurance is for all life stages, not just for those with families and dependents.
Myth #2: Life insurance is too expensive.
Reality: Most people overestimate the cost of life insurance
According to industry research, many consumers believe life insurance costs three times more than it actually does. In truth, a healthy 30-year-old could secure life protection with substantial coverage for less than the cost of a daily takeaway coffee. Life insurance comes in many forms and price points. It’s a very flexible product so whether you need basic protection or a more robust policy there are lots of options.
Myth #3: My employer-provided coverage is enough.
Reality: Group life insurance is a great benefit but it’s rarely sufficient on its own.
An employer sponsored life insurance plan can be a great employee benefit. However, these often just provide coverage equal to one or two times your annual salary. That may sound like a lot but it’s important to consider what’s needed to replace your income and more. When debts are settled is it enough to support your family longer term? Also if you leave your job or are made redundant you will lose that coverage so a personal policy bridges those gaps.
Myth #4: Life insurance only matters if you have children
Reality: Life insurance is about anyone who depends on you financially as well as any legacy you want to leave.
While many people do only consider life insurance when they become parents, you need to look at the bigger picture. Who depends on you financially? This could include your spouse or partner, aging parents, business partners, or even a charity. Life insurance can also be used to pay off debts,cover funeral expenses, or protect a family business. Life insurance isn’t about protecting you, it’s about protecting those you leave behind.
Myth #5: It’s too difficult to buy lifeinsurance
Reality: Life insurance can feel complex but that’s where a financial broker can help
There are different types of policies with different features and benefits. And it's true that trying to figure them out on your own can be overwhelming. But you don’t have to do it alone. At Searing Point Wealth Management, we can help you understand what type of policy and cover fits your individual needs and within your budget as well as how to make life insurance part of your broader financial plan.
Next Steps
Life insurance isn’t about preparing for the worst, it’s about planning for the future with confidence. The reason you need it is for your family and the myths that surround it can be costly, both financially and emotionally. It isn’t just about money, it’s about ensuring that your legacy includes financial stability and peace of mind for the people you love most. We’d be delighted to help you understand which produc and options suit your individual circumstances the best. Just contact our team today and together, we can develop a plan that supports your objectives for today, tomorrow, and the future.
