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5 Common Myths About Indiana Life Insurance

There is a lot of questionable information and myths floating around concerning life insurance. As you gather information in your search for Indiana life insurance, you must be able to discern good information from myth.

While there plenty of myths out there, here are some of the most common that will help you to avoid pitfalls associated with not getting the appropriate Indiana life insurance.

 

1. Single People Don't Need Indiana Life Insurance

Even if you do not have any dependents, you may still benefit from Indiana life insurance. Funeral expenses and unpaid debts can add up quickly if something should happen to you and these financial issues would have to be cleared up by someone in your family.

Indiana life insurance can help to pay for the expenses that you leave behind. You can also use an Indiana life insurance policy to leave behind money to those you care about. Many people use their Indiana life insurance policy to give to their favorite charity.

 

2. Indiana Life Insurance Provided by My Job is Enough

This may or may not be true but don't count on it. You must first determine your Indiana life insurance needs. You need to include how much money it would take for those you leave behind to get by with: all debts, daily living expenses, healthcare and education for your children.

For a single person with no children and no spouse, your employee provided life insurance is probably enough. However, with a spouse and children in the mix, you may find you need much more Indiana life insurance that what is provided by your employer.

 

3. Indiana Life Insurance Premiums are Deductible from Taxes

Sadly, this is also a myth unless you are self-employed and the life insurance is used to cover the business. Personal life insurance premiums are not allowed to be deducted from your personal income taxes. The confusion may be caused because there are some tax benefits regarding Indiana life insurance policies. If you have a permanent life insurance policy that contains an investment component, then the cash value that builds in this policy is tax-deferred.

 

4. Breadwinners are the Only Ones Who Need Indiana Life Insurance

If either you or your spouse stays at home to take care of the kids and keep the house in order, Indiana life insurance should still be considered on that person. If something happens to the homemaker, their services will have to be replaced. As the breadwinner, you will either have to hire someone or take time off of work to do it yourself. With an Indiana life insurance policy, you can use the death benefit to help cover this considerable cost.

 

5. Always Get a Return of Premium Rider on Indiana Term Life Insurance

A Return of Premium (ROP) rider on an Indiana term life insurance policy states that if you do not die during the term of the life insurance policy that you get all, or at least part, of your premiums returned to you. This is not always a sound financial decision.

Many consumers have a hard time thinking about buying life insurance that will never be used, feeling that the premiums are just flushed down the drain if the policy expires. By adding a ROP to a term life insurance policy, you will greatly increase the cost of the policy, generally by as much as 50 percent or more. One of the advantages of term life insurance is that it is inexpensive, adding the ROP makes it a much less cost-effective life insurance policy.

 

Summary of Indiana Life Insurance Myths

As stated earlier, there are other myths out there and as you search for information you must be diligent. Try as hard as possible to get that information from credible sources and always check the information you get with another source as a backup. Being appropriately informed can help you a great deal as you look for the best Indiana life insurance to protect you and your loved ones.

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