You may have heard that life insurance for seniors isn’t affordable or that investing is a better option, but the truth may surprise you. We’ll address five common myths about life insurance here to help you make the best financial decision and get the coverage that’s right for you.
Myth #1: Life Insurance is Too Expensive
Over half of Americans think that life insurance costs triple the amount that it actually does. In order to debunk this theory, let’s take a look at the two main types of life insurance: term life insurance and whole life insurance. Term life insurance covers you for a set amount of years, and when your term is up, your policy expires. Term life insurance may come at a lower cost depending on how long it’s for and your age, but outliving your term limit is a real possibility. If you are over the age of 70, term life insurance will have its limitations and will come at a higher price point. Whole life insurance covers you for the rest of your life, and your rates are locked in and will never go up. Whole life insurance also gives you the ability to choose your coverage amounts, so you can tailor your policy to fit your needs and financial capabilities.
Myth #2: I Can’t Get Life Insurance If I’m a Smoker
Another myth about life insurance is that it isn’t available to smokers. The use of tobacco products is the leading preventable cause of cancer, and it affects more than just your lungs. Most insurance policies will cover smokers, but the premium will be more expensive. The Quit Smoking Advantage at Americo can help with coverage. Smokers can receive a whole life Eagle Premier Smoker Insurance Policy featuring nonsmoker rates for the first three policy years. As long as you can provide satisfactory evidence to Americo that you have quit smoking and quit all nicotine use for a minimum of 12 months before the third anniversary of the policy , your premium and Death Benefit will remain level. This also can be great motivation to finally kick the habit.
Myth #3: I’m Single and Don’t Have Dependents, So I Don’t Need Life Insurance
Even if you’re single and have no dependents, you should still have a life insurance policy to cover your final expenses including personal debts, funeral costs, and medical bills. In certain circumstances, your loved ones may be responsible for your debts. For example, if you ever had someone cosign on a loan, they may be responsible for repayment after you die. If you have an executor of the estate, that person is responsible for settling all debts and funeral costs. As a general rule of thumb, a person’s debts don’t die with them. Instead, they’re owed by and paid by the person’s estate. If there are insufficient funds in your estate, you could be leaving the executor scrambling to cover costs or your loved ones paying for your funeral.
Myth #4: It’s Better to Invest Money Than Purchase Life Insurance
Even if you are in excellent health, the unexpected can happen. If you don’t have enough money in savings and other investments at the time of your death, there won’t be enough to cover outstanding debts and end-of-life expenses. Did you know the average cost of a traditional funeral can be between $8,000 and $10,000? And this doesn’t cover additional services like flowers and obituaries. Until you have reached your long-term savings goals, it’s best to have an insurance policy to act as a security blanket in the event of a worst-case scenario.
Myth #5: My Life Insurance Policy Through Work Is Enough
One of the biggest myths about life insurance is that your policy through your job is sufficient. There are several reasons that your coverage through work may not be enough, and is something that warrants further consideration. Places of employment generally offer a group life insurance policy at little to no cost to you, usually in the amount of one year’s salary. While this may sound tempting, you may want to consider a few things first. One, your insurance is tied directly to your employment, which means changing jobs or retirement can result in losing your policy. Additionally, this policy may not be enough to cover your final expenses, leaving your loved ones strapped with the financial burden. Even if you have coverage through your work, additional coverage may be necessary.
Americo Senior Life is Here to Help
Now that we have debunked five common myths about life insurance, you may be looking for the insurance policy that is right for you. For over 100 years, Americo Life’s family of insurance companies has been committed to helping people like you discover life insurance plans that are tailored to the needs of you and your family. No medical exam is required, and your rates are locked in for life*. Call now to learn more or get a free quote online.
Issuance of policy may depend on answers to medical questions. The Quit Smoking Advantage allows you to receive an Eagle Premier Smoker policy with Nonsmoker rates for the first three policy years. Prior to the third policy anniversary, if you can provide evidence satisfactory to Americo’s requirements that you have quit smoking for at least 12 months, your Death Benefit and premium will remain level. If you are unable to quit smoking, the face amount will be reduced and premium will not change, or you can contact Americo to increase your premiums to maintain the face amount.
Americo Senior Life is a marketing website representing Americo Financial Life and Annuity Insurance Company (AFL). Final Expense Whole Life Insurance policies (Policy Series 311/312/313), Eagle Premier Smoker and the Quit Smoking Advantage (Policy Series 311) are underwritten by AFL, Kansas City, MO, and may vary in accordance with state laws. Not all policies and benefits are available in every state. AFL is authorized to conduct life insurance business in the District of Columbia and all states except NY.