Understanding Life Insurance: Separating Fact from Fiction

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Life Insurance Myths Debunked

Life insurance is crucial for providing financial support to your family in the event of your death. Unfortunately, misinformation can cause delays in purchasing life insurance. Here are seven common myths to be aware of when making decisions regarding your life insurance.

1. Life Insurance Is Too Expensive

Many people worry about the cost of life insurance. However, the cost varies based on factors such as age, health, gender, and occupation. The type of life insurance also plays a significant role in the cost. For example, term life insurance is generally cheaper than permanent life insurance options. Shopping around and comparing quotes can help you find an affordable policy. At O1ne Mortgage, we can help you find the best rates. Call us at 213-732-3074 for personalized assistance.

2. Young People Don’t Need Life Insurance

Contrary to popular belief, purchasing life insurance when you’re younger can save you money in the long run. Life insurance is less expensive for young people with no health issues. If you have a family or plan to have one, life insurance is essential regardless of your age. It provides financial support for your family and protects them from your debt if you pass away.

3. Employer-Provided Life Insurance Is Enough

While employer-provided life insurance is a great perk, it may not be sufficient to cover your needs. Employer coverage is usually a flat amount or based on your salary, which might not be enough to support your family. Supplementing it with an additional policy can ensure adequate coverage. O1ne Mortgage can help you find the right policy to supplement your employer-provided insurance. Contact us at 213-732-3074 for more information.

4. You Only Need Life Insurance if You’re the Breadwinner

Your contributions to the home are valuable even if you’re not the primary financial provider. Life insurance is essential to keep the family afloat, whether you support the household financially or provide childcare and home upkeep. It allows you to avoid passing on financial obligations to your loved ones and can also enable you to leave an inheritance or make a charitable donation.

5. You Can Only Qualify if You’re Healthy

Having pre-existing health conditions doesn’t mean you can’t get life insurance. There are policies for people with health conditions that only require basic health information. Guaranteed issue life insurance is also an option, though premiums may be higher. Shopping around can help you find the most cost-effective policy. O1ne Mortgage can assist you in finding the right policy for your health situation. Call us at 213-732-3074 to get started.

6. Life Insurance Is Too Complicated

Life insurance can seem overwhelming due to the abundance of options, but understanding the basics can help. Term life insurance offers coverage for a specific time frame, while whole life insurance provides lifetime coverage and includes a cash value component. Working with an experienced life insurance agent can help you decide which coverage is best for you. O1ne Mortgage is here to guide you through the process. Reach out to us at 213-732-3074 for expert advice.

7. You Don’t Need Life Insurance if You Have Savings

While savings are important for unexpected expenses, life insurance provides a financial cushion for loved ones after the policyholder’s death. Savings may not be enough to cover financial obligations and provide long-term support. Life insurance allows your family to maintain their quality of life without worrying about finances. O1ne Mortgage can help you find a policy that complements your savings. Contact us at 213-732-3074 to learn more.

The Bottom Line

If you’re concerned about the cost of life insurance, starting with a basic term life insurance policy can be more affordable. Review your needs periodically and adjust coverage as your financial situation changes. Some states allow insurance companies to set rates using credit-based insurance scores, so check your credit score before shopping for life insurance. O1ne Mortgage is here to help you navigate the process. Call us at 213-732-3074 for personalized assistance.

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