Do I need to buy life insurance? After reading these 12 correct understandings of life insurance, you will have the answer in your mind~

Purchasing life insurance is an important decision. You need to consider whether the current cost of life insurance is appropriate for your financial future.

Life insurance is a risk management tool that can provide financial protection and reduce the burden borne by your family or beneficiaries, such as funeral expenses, debt, education and medical expenses. You can also use life insurance as a wealth accumulation tool.

But misconceptions about life insurance can put people off from its valuable features.

The following are common misunderstandings to help you determine whether you are suitable for buying life insurance⬇️

Myth 1: Life insurance is expensive

Many people think that life insurance is out of their budget. While permanent insurance is indeed expensive, term life insurance is more affordable. For example, a 30-year-old woman with $1 million in coverage for 20 years will pay about $50 per month, while a man will pay $60.

[Do you only want to buy term life insurance for a few dozen dollars a month? ]

Most life insurance companies in the United States provide free online quotes. After filling in basic information, health status (such as whether you smoke or exercise) and expected insurance amount, you can prepare a personal insurance policy and provide a personal rate quote based on your personal situation. However, due to the different background conditions of each insurance company’s policyholders, the rate setting rules are different. The actual cost is related to the policyholder’s personal health status and awareness, so the specific amount should be quoted in person for the most accurate inquiry.

Warm Tips: Online inquiries usually offer larger discounts. If you further provide your phone number and let the insurance broker contact you, you may get an even bigger discount.

Myth 2: Life insurance is only for funeral and burial expenses

Life insurance isn’t just for funeral expenses. A policy can serve as a financial safety net if you die, especially if you have dependents. Your beneficiaries can use the proceeds to pay off the remaining mortgage or your children’s college tuition.