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Life Insurance Experts Bust the Myths and Discuss Why You Need It Now

The idea of life insurance makes many think “why” or “when.” These experts answer your questions and share how it can help the lives of loved ones forever.

Dennis Martin

President, Individual Life and Financial Services

In short, why is life insurance necessary?

In short, peace of mind. When people are younger, life insurance helps protect families from the effects of a sudden loss of income, especially that of a breadwinner. Later in life, permanent life insurance can help optimize retirement plans and establish a legacy.

Who feels the effects if disaster happens and the affected does not have life insurance?

Unfortunately, it will be the people that you love the most, those who are closest to you — spouses, children, business partners, etc. Life insurance is one way to show you care, and that you want to be sure those you love the most will be taken care of if you aren’t there to provide for them.

How has life insurance changed your life?

In major ways. My mother passed away suddenly when she was 50. The life insurance she had through her employer provided a comfort to us as we grieved and planned for her funeral. It also helped my dad understand how we could use it to plan his own financial future and legacy. Once you experience the difference a life insurance policy can make to those who are grieving a loss, you become a lot more passionate about helping provide that peace of mind for other people.

What are some common myths consumers believe about life insurance?

One of the biggest myths about life insurance is that it’s too expensive. There are many options for protection, and you don’t have to be wealthy to protect your loved ones and enjoy the peace of mind life insurance can provide.

How do you see future generations looking at life insurance?

One of the key features of life insurance protection is that it stands the test of time. While we may see families forming later than in the past, which might delay the perceived need, the desire to protect those we love is a basic human desire and isn’t going to change. One risk of waiting is that the cost does go up with age, and there is an increased risk of not qualifying as you get older due to health changes. 

Steve Sanders

Vice President, Life Distribution, F&G Life

In short, why is life insurance necessary?

For many, our human capital — our power to earn labor income over our lifetime — is our greatest asset. We insure our homes and our cars, so why wouldn’t we insure our income? Life insurance protects what’s most important to us, our loved ones, and helps ensure they can maintain their desired lifestyle in the event of an untimely death. We all intuitively have a plan for our lives and how the future will unfold, whether that includes providing a lifestyle for our children, paying for college, owning a home, or even securing a successful retirement. Those plans require time to develop and years of earnings to cover the cost. An early death can rock those plans to their core. Life insurance is one way to help ensure our plans can continue if time is cut short.

Who feels the effects if disaster happens and the affected does not have life insurance?

Anyone you care about and provide for will be affected if the worst were to happen. Think about all the things your income takes care of or is being saved for right now. Whether that’s childcare, bills and groceries, college, a mortgage, or even retirement, suddenly those short-term expenses and long-term plans may become near impossible for your loved ones without that income.

What are some common myths consumers believe about life insurance?

The first myth is that “it’s too expensive.” In reality, the cost of basic life insurance coverage can be similar to many of our typical daily expenses: phones, streaming TV services, dining out, and more. It’s really about prioritization, not expense. The second myth is “I’m too young to need it.” In fact, it’s often best to purchase life insurance in your 20s and 30s, because we tend to be healthiest at these ages. And generally speaking, the younger and healthier you are when you purchase insurance, the better the price. Additionally, many people don’t realize that a permanent life insurance policy typically includes a cash value benefit. By purchasing permanent life insurance at a younger age, you’re giving your policy more years to potentially accumulate cash value that you can access later in life.

How do you see future generations looking at life insurance?

Some of today’s most popular life insurance products provide “living benefits” designed to offer access to your policy values during your lifetime. For some, it becomes retirement income, and in other cases, it helps pay for health expenses during a terminal, critical, or chronic illness. As we live longer, future generations will likely experience their parents and grandparents managing longer retirements with rising healthcare expenses. This shift brings even more value to having a life insurance agent, because they stay on top of the latest policies and provide multiple options for each unique situation. Lastly, I bet future generations will view permanent life insurance as not just the foundation of lifetime planning, but as a valuable tool for living their best lives.

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