Five misconceptions about life insurance

A life insurance policy is one of the greatest gifts you can leave your family when you pass away – but it can be a complicated topic. 

An insurance agent will help you understand how it can protect you and your loved ones, so that finances do not become an added stressor during such a difficult time.

Here are five common misconceptions about life insurance and what you should know:

1. If you don’t have kids or a spouse, you don’t need it

If you unexpectedly pass away, and you’re not protected with life insurance, your estate may have to cover the expenses that you leave – including medical bills and personal debts. 

Even if you don’t have kids, your partner or spouse would be left to sort out these expenses in your absence. 

It’s best to have at least a basic life insurance policy, to help you pay for any essential bills. 

2. Life insurance is too expensive

Life insurance comes in a range of coverages and affordable options. 

Term premiums are usually reasonably priced and worth considering if permanent life insurance doesn’t meet your needs or budget. 

Term insurance provides coverage for a certain period of time, and many policies offer the option to upgrade to a permanent life insurance policy later.

3. Your coverage from work is enough

You may need more coverage than what your employer provides. 

Additionally, if your employer switches insurance providers, your policy could change without notice.

4. Young and healthy people don’t need life insurance

The younger you are, the cheaper life insurance is likely to be, because you’re less likely to need it – but accidents can still happen. 

Younger people tend to engage in riskier recreational activities, including sports, which can lead to unexpected injuries. 

Plus, you may still have expenses, such as your student loans and other debts that your estate will have to sort out in your absence.

5. I should get the same life insurance policy as my friend or neighbour

Your individual needs, goals and lifestyles may be very different from those around you, so it’s important to tailor your policy to your unique needs. As you go through different life stages, your financial needs can change – and so can your life insurance needs.

Submitted by Steve Lund, Desjardins Agent. 

Steve Lund