life insurance

3 Myths about Life Insurance


September is Life Insurance Awareness Month and therefore I have dedicated this month’s blogs to education and debunking myths about Life Insurance for the healthcare community. Life insurance is a flexible tool that can strategically used to help a physician, practice or hospital protect against risk.  However, there are often myths that are not always true today.  For example, we often hear statements that start with “20 years ago in residency I was told…” or “15 years ago the senior physician of our group said…”   Much like the delivery of healthcare, life insurance companies and the products they sell have evolved to better meet the needs of their customers.

Life Insurance Myth #1 – Universal Life Insurance is very risky.  There was a time when these policies got a bad rap because the products being sold were estimating unrealistic gains showing unrealistic cash value growth.  In today’s life insurance products tools can be built into the program to limit or minimize the amount of risk.  The benefit to this type of policy is the flexibility.  Universal Life Insurance can be a great tool when planning for your future either personally or professionally.

Life Insurance Myth #2 – Purchase Term Insurance only because I won’t need Life Insurance down the road.  The reason you purchased life insurance today will most likely be different than the reason you would like to have it in place 10, 20 or 30+ years from now.   Today’s buying decision may be based on debt, but the future may be based on your estate, sales of a business, philanthropic plans, or many other needs. Your term policy may be able to be converted to permanent insurance or you could choose to purchase permanent life insurance today.

Life Insurance Myth #3 – I am uninsurable.  The fact of the matter is you may be, but I would not take it for granted.  There are a variety of policy types, funding mechanisms, and ways to manage your risk.  You may not qualify or be able to afford a $1,000,000 30 year term policy, but what if you could qualify and afford a $100,000 20 year term policy.  This may help you bridge the gap.  Remember a little bit will still help you more than nothing.  Just because you can’t afford to cover the entire risk, doesn’t mean you should choose to walk away empty handed.

Most people need life insurance.  The Life Insurance products that are available today are far advanced and more sophisticated than what we have seen in the past.  1/3 of consumers don’t think they have enough life insurance and September is a great month to review what you currently have in place.  Each life insurance policy should be reviewed with your agent/carrier as not all policies are created equal.  For more information or a complimentary review of your policy, contact Kelly Reed | 906.315.7227 | kellyr@vastsolution.com.

 

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