Life insurance myths are some of the most persistent misleading misinformation affecting people planning retirement. These analytics are commonly severely lacking in adequate research to back up popular perceptions. Consequentially, a few have fallen into avoidable financial traps. Insurance has the potential to be the strongest plan with the right guidance.
Benefits of utilizing life insurance:
1. Protection of income in an untimely death to help the survivors.
2. Insurance of savings.
3. Help ease tax management.
4. Potentially maximize investments and returns.
It is paramount to debunk the myths that surround life insurance before commencing life retirement plans.
1. It is pricey
Another misconception about life insurance is the price. In fact, life insurance statistics show that about 50% of people overestimate the cost of term life insurance. Like other types of insurance, the cost of life insurance is different for every individual, and can be based on your age, gender and overall health.(1)
2. There is an overwhelming number of available packages
This insurance varies in grading in tens of ways. Analytics indicate that most people settle for term insurance. This product’s policies are easy to understand with all the available calculator software tools online. If a person passes on in the period agreed for paying monthly premiums, such as ten or twenty years, the money is granted to the beneficiary.
3. It is unnecessary for singles
It is easy to dismiss the insurance when no one will be left overweighed by your passing. As such, old retirees with no immediate families may opt out of signing up for one. The children of the candidate who would otherwise consider putting them on the insurance also find no sense in purchasing it. These notions do not cover the fact that the insurance is convenient in covering burial expenditures, co-signed debts and business operations of the deceased.
4. It is not available to the sickly
A comparison report generated using NerdWallet indicates that a fifty-year-old man with genetic heart disease can acquire 20-year insurance with a $250,000 policy and a monthly bill of $46. Ailments that attract higher costs include arthritis, diabetes, and high cholesterol. The myth that high-risk patients are closed out of the insurance misses the fact that only chronic fatal and advanced illnesses disqualify one from the insurance plan.
5. Old people cannot receive the insurance
A 60-year-old should never believe the hype that they are unfit for the insurance packages. Insurance companies understand that their age group has different life goals than a retiree at 30 years old. Most have customized packages to help elderly retirees acquire short-term insurance products. Insurance for the elderly is useful to cover the family in estate planning, payment of debts and burial costs.
6. Savings are preferable
Savings are a sensible plan in the face of retiring, but insurance packages are equally considerable for their low rates. It is possible to save for other life demands such as vacations while simultaneously paying for insurance.
7. The insurance is rarely honored
A matured insurance policy has excellent returns. In the case of the applicant passing one, the beneficiary enlisted receives the cash without glitches in the transaction. The insurance’s primary role is to protect the well-being of the family of a retiree.
Shopping for retirement insurance is not an exciting chore. It is prudent to personally research the select insurance policies before purchasing to prevent falling for ungrounded myths while planning for the last stage of life.
Feel free to reach out to me if you have any questions regarding life insurance or any retirement planning strategies, I share in my weekly blog messages.
Reach out to me at https://vincentavirga.com/contact/ or call my office directly at (888)314-PLAN to schedule a call with me.
Always Be Outstanding and let’s make yesterday jealous of today!
Vincent A. Virga
President ~ PFS Wealth Management Group
Advisory services offered through Madison Avenue Securities LLC (MAS), a Registered Investment Advisor; MAS and PFS Wealth Management Group are not affiliated companies. MAS does not provide legal and tax advice. Seek competent legal and tax counsel for your specific needs.