Debunking the Myths Regarding Florida Life Insurance

When it comes to Florida life insurance, everyone has likely heard the five myths listed here. Unfortunately for some, these myths often lead to such things as failing to purchase enough life insurance, paying too much, or even purchasing the wrong type of insurance.

Myth #1 – Life Insurance Coverage should be Twice Your Annual Salary

The absolute most common thing that consumers are led to believe is that they only need an amount of coverage that is equal to twice their annual salaries. Unfortunately, this is often not enough coverage to ensure that final expenses are paid and that dependents are cared for. The best way for you to determine the amount of coverage you need is with a cash flow analysis, or an in-depth look at income versus expenses over time. Life insurance coverage amounts should never be determined by income earning ability or your current income.

Myth #2 – Single Adults Without Dependents Do Not Need Life Insurance

Another common misconception regarding Florida life insurance has to do with the number of dependents the insured has. You may believe that if you are not married and you have no dependents, you do not need life insurance at all. This is not the case, however, as you will still need to ensure that your personal debts, medical bills and funeral costs are covered. While it is true that you will not need as much life insurance as someone who has children or who is married, you will still need at least some coverage.

Myth #3 – The Term Life Insurance Provided by Your Employer is Enough

These days, many employers offer term life insurance to their employees—either at no cost or at a greatly reduced rate. You may think that this is enough life insurance, but it often is not; these policies are not tailored to your individual needs like those that you can purchase on your own. If you opt to take the term Florida life insurance from your employer, you may need to purchase additional insurance—either from your employer or through a private company.

Myth #4 – Only the Breadwinner Needs Life Insurance

Again, this simply isn’t true. Everyone in your household should have some sort of Florida life insurance—even children. In the event of a family member’s death, there will be multiple expenses involved. Medical bills can be enormous and funeral costs can top out at more than $10,000. Another thing to consider is the actual cost of replacing the services provided by a homemaker; cleaning and daycare costs alone can make a huge dent in your checkbook.

Myth #5 – You Should Buy Term Life Insurance and Invest the Difference

It is important to carefully consider the differences between term and permanent Florida life insurance when making this decision. While it is true that term life insurance is often the cheaper option, this is only true to a point. In later years, or when the term renews, your rate could climb significantly. You should evaluate certain factors, such as whether or not you are certain you will need coverage at death, in order to decide between term and permanent life insurance.

Buying Florida life insurance does not have to be a challenging task. In most cases, you can determine the amount you should purchase as well as the type of insurance that is best for you simply by taking the time to speak with a knowledgeable insurance agent.