If you're in the market for life insurance, it's wise to familiarize yourself with the different kinds of coverage and what the various terms mean. Unlike other types of policies, life insurance isn't exactly intuitive. In fact, it's a product that many consumers know they need but aren't entirely sure how it works. Here are some common myths to be aware of as you search for coverage. 

3 Widespread Myths About Life Insurance 

1. Only People Who Earn Money Need Life Insurance 

Spouses who stay home to manage the household or raise the children often assume that they don't need coverage. If they were to pass unexpectedly, their partner would still have a job and be able to support themselves. 

However, consider everything that the surviving spouse would have to replace in the wake of the loss. Arranging for ongoing domestic help and child care can be expensive, so it's imperative to account for the cost of doing so if the spouse who takes care of these responsibilities passes. 

2. My Employer's Group Life Insurance Will Meet My Needs

Many companies include life insurance coverage in their benefits package. Called group policies, they tend to have lower premiums because the risk is distributed across a greater number of people. 

However, they typically have lower caps as well. For example, many employer-sponsored group policies provide just $50,000 in coverage. While such a payout can certainly be helpful should the need arise, it likely won't be enough to protect your family's financial security in the long term. 

3. I Won't Get Approved Because of a Preexisting Condition 

You don't necessarily have to be in perfect health to qualify for life insurance. If you have any chronic conditions, you will still find a policy that meets your needs. Conditions that don't automatically disqualify you from coverage include diabetes, asthma, and hypertension. 

Some insurers even offer special policies for people with HIV or cancer. Understanding your health needs as you search for coverage will help you find a plan that suits your unique situation, so make a list of any conditions or concerns to keep in mind.

If you’re looking for life insurance coverage or updates, Premier Financial Agency will help. Owner Teresa Smith is licensed to work with clients throughout Arkansas, Texas, Oklahoma, Louisiana, Mississippi, Missouri, Tennessee, and Alabama. She offers a variety of life insurance policies, from term policies to universal coverage, in addition to annuities and retirement planning assistance. To request a free quote, call (870) 740-8661 or visit the agency’s website.