To help break up some of the confusion about life insurance, we have put together a list of 8 life insurance myths to debunk and separate
facts from fiction.
Myth: Life insurance is really expensive.
According to the 2015 Insurance Barometer study conducted by Life Happens, 80% of consumers misjudge the cost of term life insurance. Respondents gave a median estimate of $400. Millennials put it at $600. The actual price is about $160 annually, which averages to about $13 a month.
Myth: If you are a stay-at-home parent you don’t need it.
If you’re a stay-at-home parent, life insurance is still important. You may not bring in an actual paycheck for the household, however you likely provide services that could cost tens of thousands of dollars to replace each year. These may include child care, daily transportation, home maintenance and cooking, to name a few. If you were to pass away, life insurance may help cover some of these costs.
Myth: Only the breadwinner needs life insurance.
Even if you don’t have the biggest paycheck in your household, your family still relies on your income for day-to-day operations. Unless your family would have that extra income to spare, you need insurance on both spouses.