In recognition of September as Life Insurance Awareness Month, Farm
Bureau Financial Services is focused on helping consumers better
understand their life insurance options and secure the coverage they
need for long-term financial stability.
According to the 2014 Life Studies report by LIMRA, a financial industry
research company, less than one quarter of middle-market consumers are
comfortable with their knowledge of financial-services including life
"Life is complicated, but buying life insurance shouldn't be," says
James P. Brannen, Farm Bureau Financial Services' Chief Executive
Officer. "The best first step is contacting a licensed agent and
leveraging his or her industry and product knowledge and experience to
help guide you."
There are many misperceptions about life insurance and the extent to
which it can make a difference for individuals, families and businesses.
Farm Bureau Financial Services is celebrating Life Insurance Awareness
Month by providing the facts that bust some of the most common myths and
make life insurance easier to understand for today's time constrained
Myth #1: Life insurance is too expensive.BUSTED: Up
to 85% of Americans overestimate the actual cost of life insurance1
and may not realize there are many options from which to choose. A
$250,000 15-year level term policy for a healthy 30-year old costs just
$250 a year.2
Myth #2: Only families with young children need it.BUSTED:
Life insurance can be the foundation of financial security for your
family or business. Proceeds from a life insurance policy can help cover
outstanding debt like a mortgage and credit cards or fund financial
objectives including retirement.
Myth #3: Children don't need life insurance.BUSTED: Buying
life insurance for children guarantees their insurability into the
future and can be an affordable way to purchase additional covrage as
they grow into adulthood. It's a great way for parents and grandparents
to give the young people in their lives the gift of financial security.
Myth #4: I'm young and healthy and don't need it right now.BUSTED:
Buying life insurance when you're young and healthy is best! You can
benefit from lower rates and also ensure that you have the coverage -
and financial security - you need for the long haul.
Myth #5: The life insurance I purchase at work is enough.BUSTED:
The general rule of thumb is that 5-8 times your salary is needed to
replace your income if you have dependents (some experts recommend 10-12
times).3 That said, employer benefits, are often just 1-2
times the employee's annual salary and typically end when your
Myth #6: Term insurance can't be converted to permanent.BUSTED:
Many term policies are renewable and convertible to a permanent
policy. After holding your term policy for a set period of time, it may
be possible to convert it with a special credit for doing so. The credit
helps offset any increase in premium and the usual health assessment may
Myth #7: Stay-at-home parents don't need insurance.BUSTED:
Don't underestimate the importance of a stay-at-home parent; the value
he or she adds to the financial stability of the family is substantial.
If the person responsible for child care and general household
management is no longer in the picture, money will be needed to cover
all of those bases so you concentrate on keeping the family grounded and
focused on more important things.
About Farm Bureau Financial ServicesThrough an exclusive,
multi-state agent force, the companies affiliated with the Farm Bureau
Financial Services brand underwrite, market and distribute a broad range
of insurance and financial services products to individuals and
businesses. To learn more about our companies or life insurance options,
1 LIMRA and LIFE Foundation 2014 Insurance Barometer Study2
Through a Farm Bureau Financial Services agent3 www.Forbes.com
Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20140828005985/en/
[ Back To NFVZone's Homepage ]