Don’t let common misconceptions about life insurance keep you from securing adequate coverage. Here, we dispel the myths and uncover the truths about the need for life insurance.
Myth 1. Life insurance is expensive. If you think you can’t afford life insurance, imagine how your family would make ends meet without your income. The cost of life insurance depends on the type and amount of coverage. Term life insurance is generally more affordable than permanent life insurance, and provides coverage for a specified period of time. Permanent life insurance provides guaranteed1 protection for your lifetime, while building cash value2 you can borrow against for your financial needs.
Myth 2. Only families with young children need life insurance. Families with young children have a need for life insurance, but other reasons for having life insurance include taking care of costs associated with your death, such as funeral expenses or outstanding debts. Life insurance proceeds can also provide income for a spouse or financial support for family members.
Myth 3. Children don’t need life insurance. There are several good reasons to buy life insurance for children. It guarantees insurability and, in some cases, provides opportunities to purchase additional coverage in the future. Premiums are also generally lower. Your Farm Bureau life insurance policy may offer a children’s term rider, which provides term life insurance for each qualifying child, age 7 days to 23 years.
Myth 4. Term life insurance can’t be converted to permanent life insurance. Some term policies are renewable up to a certain age, but the cost of renewing or purchasing term coverage increases as you age or experience health problems. Most term policies allow you to convert coverage to a permanent policy after a certain time period, and often without additional health assessment.
1 The guarantees expressed here are based on the claims-paying ability of Farm Bureau Life Insurance Company.
2 Universal Life with Secondary Guarantee insurance is not designed for cash value accumulation.
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