10 Myths about Term Life Insurance policy in South Texas

By - Ganesh
19.03.22 10:50 AM

10 Myths About Term Life Insurance Policy In South Texas

Term Life Insurance Policy In South Texas

Term life insurance provides protection from financial hardship that occurs when the insured person dies before their policy expires or reaches its term limit. But there are many myths and misconceptions about this type of coverage that may make it seem less desirable than it actually is. 

Here are the most common myths about term life insurance, plus the facts to help you decide if this type of insurance coverage might be right for you.

Myth 1 : I am too young to get term life insurance.  
Fact: The truth is that everyone can get term life insurance no matter how old they are, so long as they qualify based on health and age. Term life insurance is typically much less expensive than whole or universal life insurance because it is meant to cover a specific amount of time in your life, such as 20 years or 30 years until death. Because term life insurance covers such a small period of time, premiums are lower than those for other types of permanent life insurance policies. Get most affordablelife insurance policies in South Texas here!

Myth 2 : I don’t need life insurance if I have no debt.
Fact: Many people believe that, with no debt and a hefty savings account, they don’t need south Texas life insurance because their heirs will have enough money to pay off debts and still live comfortably. While it is true that you don’t have to worry about monthly bills after your death if your family has enough savings, most families would need additional funds to pay off mortgages, car loans and student loans, as well as daily expenses like food and mortgage payments on any rental properties they own.

Myth 3: I won’t bother getting term insurance because I can always get a better deal later if I need it  
Fact: Term life insurance is cheap to buy early in life, and getting older costs more. The longer you put off purchasing term insurance, if you decide later in life that you need it, the cost will likely be significantly higher than what’s available today. Because you can usually lock in a policy for 20 years or more at a set price (or rates), buying a reliableTX life insurance policy when young allows you to make better financial decisions regarding other investments later on.

Myth 4: All Term Policies are the same – why bother comparing?
Fact: Term life insurance is one of two major categories of life insurance. The other, which we’ll talk about in a minute, is called whole life or sometimes permanent life and these are more suited to people who want to collect a steady stream of income after they pass away... and that is it!

Myth 5: Term life insurance is expensive – I am going to self-insure!
Fact: It is a great idea to self-insure when you can, but it is unlikely that you’ll be able to do so for all of your financial risks. The fact of life is that, unless you are a solopreneur and 100% invested in your own business, there will be times when you risk running out of money in retirement or being unable to provide an inheritance for your loved ones if something happens to you or one of them. You don’t want these risks, do you?

Myth 6: No agent will call me about my coverage - so why even talk to one?FactMany people mistakenly think that if they don’t have enough money to qualify for a face-to-face sales pitch from an insurance agent, then talking to one is useless. But agents have been working with Term Life clients for decades, so there’s no reason why you can’t get great coverage online.

Myth 8: The Policyholder Doesn’t Matter
Fact: Term life insurance is a pretty simple product; if you die, it pays out, and if you don’t, it doesn’t.

Myth 9: Group life insurance is enough one?
Fact: You know your employees are a valuable part of your company’s success, but you also know that they have families to support and bills to pay—so if something happens to them; you want their survivors taken care of. Group life insurance policies can offer some benefits to employers and employees, but they’re often not enough—especially when an employee has a young family or high net worth. Term life insurance is an affordable way for business owners to offer extra protection without breaking their budget.

Myth 10I might lose my job so what's the point?
Fact: While it’s true that term life insurance can be more affordable than whole life, it doesn’t make sense to dismiss it entirely because you might lose your job or otherwise no longer need coverage. If you’re a single parent or have someone relying on your income, then it makes sense to have some level of protection in place; having any type of insurance is better than having none at all.

When it comes to choosing the right life insurance plan, most people jump to the conclusion that whole life insurance is always the best choice. However, with so many factors involved and options to consider, there’s no such thing as a one-size-fits-all solution when it comes to term life insurance versus whole life insurance.

Term life insurance is one of the most popular types of life insurance policies on the market today, in part because it’s the most affordable and because there are many surprises when you buy it.

Get a free life insurance quotes today or directly meet out top south Texas insurance agents!