Life insurance doesn't usually make the hot list of discussion topics around the holidays, but as we enter a new year and have time to reflect on things we love, things we want to change and things to which we need to give more attention, maybe it's time to bump it up on the list. Consider these popular myths about life insurance for starters.
MYTH: My house is my most valuable asset.
FACT: "My house" is probably the most common response when we ask folks, "What's your most valuable asset?" On the surface, it appears to be true. It's certainly the largest in physical size, for many, and it almost always has the largest price tag. Most of us rely on homeowners insurance to take care of construction or fixes required after any major event damages or destroys our homes. We simply couldn't afford to pay those expenses out of pocket. But if we dive a little deeper, we see the correct response to the question is, "My life." Without our lives, our homes would not exist.
MYTH: I don't need life insurance.
FACT: Forty-two percent of Americans would face financial hardship within six months of a primary wage earner's unexpected death, according to the latest Insurance Barometer Study by Life Happens and LIMRA. This could mean making extremely tough decisions to keep a family home, cars and other assets that may still have debts tied to them. Relieving the financial stress caused by an untimely passing is the peace of mind life insurance brings to families. There are very few instances when the need for life insurance doesn't exist.
MYTH: Life insurance is too expensive.
FACT: This is perhaps the largest misconception about life insurance. The majority of people overestimate the true cost of life insurance by more than three times the actual cost. Young, healthy adults can usually get the coverage they need in a term life policy for less than $30 a month. Trade for a few expensive coffee drinks, and you are good to go! Not only that, when you bundle auto insurance, renters insurance or home insurance with Clever, you usually save enough to cover the cost of a starter term policy.
MYTH: Getting life insurance is hard.
FACT: At Clever, we've eliminated life insurance hurdles. No medical exams, bloodwork, or mouth swabs required. Simply answer a few questions online and as long as you qualify, you'll have a policy in minutes. And our Clever experts are just a call or click away if you have any questions.