10 life insurance myths debunked

After interviewing hundreds of parents about why they do or don’t buy life insurance, some familiar arguments started taking shape among those choosing to go without.

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The good news is: You’re not alone if you believe these myths. The better news is: It’s never too late to purchase coverage.

1. “I Can’t Afford It Right Now”

Sure, you have a lot of dueling financial priorities. But term life insurance coverage at Fabric starts at just $11 per month (for $100,000 in coverage).* And you can apply in just five minutes.

2. “I’m Not Going to Die Anytime Soon”

Unless you have a crystal ball, there’s no way to know what might befall you, or when.

3. “I Get It Through My Work”

People who say this may not realize how little coverage their work actually provides. If your work offers life insurance at all, coverage usually doesn’t exceed $50,000 and it expires when you leave your job. If you intend to buy coverage when it expires, that’ll put you back at square one, which can be costly (see #4).

4. “I’ll Buy Life Insurance Tomorrow”

Be careful with that. Life insurance premiums increase as you age. Let’s say you wait five years before applying. Depending on how old you are when you first made that choice, you could wind up paying significantly more, if your health hasn’t declined.

5. “My Parents Will Take Care of My Family If Something Happens to Me”

They raised you after all. But that was a long time ago. Even if they’re up to the physical challenge, odds are they haven’t included this in their own financial plan.

6. “All That Money Is Wasted If I Don’t Die”

Term life insurance isn’t meant to be an investment, it’s about mitigating the most critical risk to your family. Think of it like this: Is homeowners insurance a waste if your house never burns down? Of course not. Knowing there’s a plan in place to take care of the huge costs that would come with an unexpected calamity can help put your mind at ease and give you a sense of confidence.

7. “I Can Get a Better Return Investing the Money”

The purpose of life insurance is to offer financial protection to help take care of your family’s immediate and future needs in the event that you unexpectedly pass away. Once your policy is in force, you’re covered for the full coverage amount.

8. “I Just Don’t Have the Time Right Now”

Signing up for some types of life insurance policies takes way more time than you’d expect, often weeks from the time of the first quote until the policy is actually signed and goes into effect. But technology is changing that fast. With Fabric, you can apply for term life insurance in just five minutes.

9. “I Don’t Have an Income That Needs Replacing”

Ah, the swan song of the stay-at-home parent. You figure you’re not a bread-winner, so no bread needs replacing if you’re taken out of the equation. But your partner needs to keep working to keep the family afloat. If you die unexpectedly, all of the chores you used to do (everything from watching the kids to running errands) now falls on them. They’ll likely need help, and that help costs money.

10. “I Don’t Trust Life Insurance Companies; They Don’t Pay”

Check whether the insurer you’re considering is highly rated, based on its A.M. Best rating. Top ratings indicate an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations. Fabric’s policies are issued by Vantis Life Insurance, rated “Excellent” by A.M. Best.

*Sample rate is for a 25-year-old female in excellent health. Get a quote to see personal pricing.

This article first appeared on Fabric.