Life Insurance Myths That Could Hurt Young Families
You are starting a young family and you have the future to look forward to with your spouse and family. Young families have new commitments, such as buying your first home or having children. Another commitment is to make sure your family is financially secure no matter what life may bring.
If you were to die unexpectedly, life insurance is there to make sure your family can maintain their standard of living. It can also make sure they stay in your home, stay in the same school and keep on the same future track. It also gives the grieving spouse or partner time to make decisions. In some cases, it gives the spouse time to find work outside the home, without worrying about finances.
Life Insurance Misconceptions Young Families Have
Myth 1: I only need life insurance if I’m the breadwinner in my family.
Whether you bring home more or less than your spouse, your family relies on your income. Any income would be missed if something were to happen to you. Even if you don’t work 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 management. These services can be costly if that person has to get a job away from the house.
Myth 2: If I buy a term life insurance policy and find that I still need protection when the term ends, I can always renew the policy.
Term policies are quite popular with many young families. This is because they typically offer the greatest coverage for the lowest cost. Term insurance provides protection for a specific period of time (the “term”), and can be ideal for people who feel they have financial needs to cover that will disappear over time, such as a mortgage or a child’s education.
However, many families realize that even after the kids are grown and the mortgage is paid off, their need for insurance continues—to provide income for a surviving spouse, eliminate debts, pay taxes, etc. Because life insurance premiums increase with age, renewing your policy when the term expires can be very expensive. Moreover, poor health may make renewal impossible.
Myth 3: I only need term life insurance.
Term life insurance makes sense for many young families because their need for coverage is great and their budgets are often limited. But that doesn’t mean it’s the only type of insurance you should consider. There are other types of insurance on the market that might suit you and your family needs for the future. Contact one of our professional and highly confidential agents today and they will get you the best life insurance on the market today with the leading brokers in Ireland.
At Oomph, we can find a life insurance policy that will protect your young family. Get your free quote here.