In decades of meeting one on one with employees at every level to discuss their benefits needs, I often hear the same objections to buying life insurance.
Here are some of the most common misperceptions–and the real truth your customers should know:
–My employer pays for my life insurance so I don’t have to worry about it.
Employer-paid life insurance is almost always a group policy that only covers employees while they’re employed at that company. In fact, according to LIMRA, only 41% of adult Americans have individual life insurance. That means employees could be vulnerable if they lose their jobs or have a break in employment. Individual voluntary life insurance bought at work is a good solution for many people because it’s portable, so they can keep the coverage if they change jobs or retire.
–I already have enough life insurance.
The U.S. Justice Department calculated compensation needed to meet the needs of families of victims of the Sept. 11, 2001, terrorist attacks and recommended 12 times income for couples without children and 20 times income for households with children, according to LIMRA. The average family is underinsured by more than $300,000.
–I can’t afford life insurance.
There are many types of life insurance available to meet different needs and budgets. Term life plans are often available for a few dollars a pay period. Even a little life insurance is better than none at all. Plus, a voluntary plan bought at work offers the convenience of payroll deduction.
–I’m single so I don’t need life insurance.