Life Insurance Myths That Could Hurt Young Families
Common Misconceptions Young Families Make About Life Insurance
When you’re just starting out, it may often feel like a dollar never stretches far enough. With new commitments, such as buying your first home or having children, comes the responsibility to make sure your loved ones are provided for financially, no matter what life may bring. This is why life insurance in Thousand Oaks, CA is so important for young families.
If you were to die unexpectedly, how would your family manage? Life insurance is there to make sure your loved ones can maintain their standard of living, stay in the current home, send your kids to the same school, and keep their plans for the future on track. Coverage can also give the grieving spouse time to make important decisions without worrying about finances.
However, there continue to be common misconceptions about life insurance that prevent young families from purchasing this valuable coverage.
Myth 1: I only need life insurance if I’m the primary breadwinner in my family.
Whether you bring home the largest paycheck in your household or the smaller one, your family relies on your income to maintain its quality of life. Even if you don’t workout outside of the home, having life insurance is a smart choice. Stay-at-home parents perform valuable services such as childcare, cooking, housecleaning, and household arrangement, which can be costly to replace for a surviving spouse or partner.
Myth 2: I only need term life insurance.
While term life insurance makes sense for young families, it doesn’t mean it’s the only type of insurance you should consider. Permanent life insurance policies provide a death benefit as well as other unique features such as a lifelong protection and ability to accumulate cash values on a tax-deferred basis. These cash values can be accessed for important uses, like a child’s education or a business opportunity.
Myth 3: At the end of my term policy, I can renew it.
Term life insurance policies are great for young families because they provide reliable coverage and fit within any budget. However, many families realize that even after the kids have grown up and the mortgage is paid off, their need for insurance continues. Life insurance premiums increase with age, and renewing your policy when the term ends may be expensive. Additionally, poor health may make renewal impossible.
Your family means a lot to you. Just like Don and Tonia, building a family and their lives together had been a priority. When Don was diagnosed with cancer, time stood still for them both. Because Don was not expected to survive his cancer diagnosis, the Wachtels were able to access up to 50 percent of the death benefit while Don was still alive.
That money allowed the family to take memorable vacations and pay for some day-to-day living expenses. In addition, his wife, Tonia, was able to take a leave of absence from her job so she could care for Don at home. It was there that Don died at age 47, just 19 months after being diagnosed.
The remaining death benefit helped Tonia pay for the funeral and to stay at home with her two daughters for several months as they grieved. And it continues to make a financial impact. “Without life insurance, I would have had to go back to work immediately, get a second job, and we surely would have lost our home,” says Tonia.
Get set up with the right life insurance coverage for your needs by contacting the industry experts at Falsken & Associates Insurance Agency, serving Thousand Oaks, Westlake Village, and neighboring communities.