Myth #6: If you are a stay-at-home parent with no income, you do not need life insurance.
Life insurance is required for anyone who makes a financial contribution to the home or whose death would place a financial strain on the surviving members of the household.
If your spouse is the principal breadwinner, they will be responsible for repaying any debts incurred during their marriage.
If this occurs and they die before paying them off, the surviving partner may have financial difficulties; therefore you must ensure that they are taken care of.
Even though they do not earn a living, stay-at-home parents should obtain life insurance coverage since the surviving parent must pay for child care given by a stay-at-home parent, and a life insurance payment may allow the remaining parent to take a few years off work.
Myth #7: If you have work-provided life insurance, you don’t need private life insurance.
Other sources of income for spouses who work outside the home include Social Security Disability Insurance payments, retirement savings accounts, pensions, annuities, investments, and so on. A loss of income may impact these types of assets as a result of a significant health problem or the premature death of a spouse.
Suppose this is the situation for you and your spouse or domestic partner. In that case, it may be time to reconsider if your present level of protection is appropriate because when one spouse or parent becomes ill or dies, the amount of money available to pay bills, buy food, and so on will undoubtedly change. Basic employer-sponsored life insurance is frequently low-cost or free, but the face value of your policy is most likely insufficient.
You will almost certainly require coverage worth at least six times your annual wage for dependents who rely on your income (some people recommend 10-12 times your income).
Myth #8: You do not need life insurance if you are young.
There is no set age for purchasing life insurance. For many people, the age at which they acquire their first home is the age at which they obtain life insurance because most mortgage lenders require you to have life insurance to purchase a property. Suppose you have a spouse or family member who is financially dependent on your salary. In that case, life insurance is an excellent option because losing your income can place them in a terrible financial situation.
Remember that life insurance is designed to safeguard your loved ones; if you die unexpectedly, it can help pay off your debts. Life insurance is a sensible option if you have a mortgage or dependents because accidents happen.
