Life Lessons
Because life insurance can be an important part of your financial planning—and securing your family’s future—it helps to separate the facts from the fiction.
Myth: “I don’t need life insurance; I’m single.”
Truth: There are many scenarios that make life insurance a good idea for single people. You may have elderly parents who depend on you for their care (or will in the future). You may want to leave funds for family, such as a niece or nephew, or even make a financial contribution to an alma mater or a beloved charity. And life insurance policies can provide value other than a death benefit. Universal life insurance, for example, builds up cash values that can be used toward business opportunities or to supplement retirement income.
Myth: “Life insurance costs too much.
Truth: People tend to overestimate the cost of life insurance. Term life insurance is a particularly affordable option that can be an economical way to provide valuable life insurance protection. The coverage lasts for a specified period of time and can give you the peace of mind of knowing that you will have helped ease the financial burden for your family in your absence.
Myth: “I have to buy a separate policy for each child I want to insure.”
Truth: Many types of life insurance can be customized to meet your needs. Should you decide to purchase coverage for your children, you may be able to use “riders” to add on coverage for them. The riders add layers of protection and benefits that are not part of the standard policy.
Myth: “I can’t get life insurance because I’m a senior citizen.”
Truth: There are policies available to senior citizens, and they can play an important role in the handling of final expenses, which might otherwise burden a surviving spouse or other family members. For example, a universal life insurance policy can be designed to
immediately increase the inheritance you leave and assure your legacy is preserved.
Myth: “As a stay-at-home parent, I’m not drawing pay—so I don’t need life insurance.”
Truth: Individuals such as stay-at-home parents provide a valuable contribution to a household, even though they may not be earning a paycheck. A surviving spouse may need to pay for services like child care and housekeeping that were previously performed without financial compensation. These are all common myths about life insurance, but they aren’t the only ones. For a better understanding of life insurance—and to see if you have any false assumptions of your own—make a plan to talk to your AAA Life Insurance Specialist.
Talk to a specialist: Call 1-800-222-1469, visit AAA.com/Life, or stop by your local AAA office.
Life insurance underwritten by our affiliate, AAA Life Insurance Company, Livonia, MI. AAA Life is licensed in all states except NY. AAA Life CA Certificate of Authority #07861.
