Myths About Insurance

1. Life insurance is only for the elderly: Life insurance is not just for the elderly, but for anyone who has dependents that rely on their income. It’s a way to ensure your loved ones are financially protected if something were to happen to you.
2. Life insurance is expensive: Life insurance policies can vary in cost depending on your age, health, and coverage needs. However, there are affordable options available, and in many cases, the cost of a policy is much less than people expect.
3. I don’t need life insurance because I’m healthy: Unfortunately, no one knows what the future holds. Even if you’re healthy now, unexpected events can happen, and having life insurance can provide peace of mind for you and your loved ones.
4. I have life insurance through work, so I don’t need to buy a policy: While many employers offer life insurance as an employee benefit, the coverage is often limited, and it may not be enough to fully protect your loved ones. Additionally, if you leave your job, you may lose the coverage.
5. I’m too young for life insurance: While younger people may not have as many dependents or financial obligations, getting life insurance early can be a smart decision. The younger and healthier you are when you purchase a policy, the lower your premiums will be.

• Term insurance is a type of life insurance policy that provides coverage for a certain period of time, such as 30 years.
• If the insured dies during the time period specified in a term policy and the policy is active, then a death benefit will be paid.
• Most term policies offer level premiums for the duration of the policy.
• Many term policies offer the option to convert from term to permanent insurance.

• Whole life insurance lasts for an insured’s lifetime, as opposed to term life insurance, which is for a specific amount of years.
• Most whole life policies feature level premiums, meaning the amount you pay every month won’t change. 
• Whole life insurance has a cash savings component, known as the cash value, which the policy owner can draw on or borrow from.
• The cash value of a whole life policy typically earns a fixed rate of interest.
• Withdrawals and outstanding loan balances reduce death benefits.

• Whole life and universal life (UL) are both types of permanent life insurance.
• Universal life policies provide flexible premiums and death benefits but have fewer guarantees.
• Whole life policies offer consistent premiums and guaranteed cash value accumulation.
• You can borrow against or withdraw the cash value with either a whole or universal life policy.
• In general, a whole life policy will have higher premiums than an equivalent UL policy.