You Can't Take It With You ... But Are You Leaving Enough Behind?
COLUMBIA, S.C., Sept. 15 /PRNewswire/ -- Millions of Americans have no
life insurance coverage, and even those people who do have coverage usually
don't have enough.* The reason? Besides the fact that most people don't want
to think or talk about needing life insurance in the first place, many of us
simply don't understand how much coverage we need -- or the potentially
devastating effects of inadequate coverage.
See how many of these life insurance myths you secretly believe:
- My employer pays for my life insurance so I don't have to worry about
it.
- I already have enough life insurance.
- I can't afford life insurance.
- I'm single so I don't need life insurance.
- My spouse has a good income so even if I don't have coverage it
wouldn't have a major impact on my family.
- My spouse doesn't work outside the home so we don't need life insurance
for him or her.
- There's no need to buy life insurance for my children.
- I'm healthy -- I can worry about life insurance when I get older.
If you agreed with any of the statements above, it's time to learn more
about how life insurance can help protect you and your family.
Myth #1: My employer pays for my life insurance so I don't have to worry
about it.
Truth: If your employer is paying for your life insurance coverage, it's
almost certainly a group policy that only covers you while you're employed
there. In fact, only 41 percent of adult Americans have individual life
insurance.* This means you could be vulnerable if you lose your job or have a
break in employment. "Individual voluntary life insurance you buy at work is
a good solution for many people," explains Monica Francis, director of product
development for Colonial Supplemental Insurance. "Individual plans are
portable, so you can keep the coverage if you change jobs or retire."
Myth #2: I already have enough life insurance.
Truth: The U.S. Justice Department calculated compensation needed to meet
the needs of families of victims of the September 11, 2001 terrorist attacks
and recommended 12 times income for couples without children and 20 times
income for households with children.* The average family is underinsured by
more than $300,000.*
Myth #3: I can't afford life insurance.
Truth: 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. "A voluntary
plan bought at work offers the convenience of payroll deduction," Francis
says.
Myth #4: I'm single so I don't need life insurance.
Truth: Even if no one else is depending on your income, you're still
likely to leave behind bills, credit card balances and final expenses such as
funeral costs. These expenses could be an unnecessary burden on parents or
siblings at a difficult time.
Myth #5: My spouse has a good income, so even if I don't have coverage it
wouldn't have a major impact on my family.
Truth: Widows and widowers say it takes four to five years before their
financial circumstances returned to what they were at the time of their
spouses' death*. One to two years after the death, half the widows and a third
of the widowers were just getting by financially.*
Myth #6: My spouse doesn't work outside the home so we don't need life
insurance for him or her.
Truth: You probably depend on your spouse for many things you might have
to pay someone else to do: child care, laundry, cooking, shopping, cleaning,
home maintenance, transportation, errands. Adequate life insurance for a
nonworking spouse can provide the income needed to protect your family's way
of life.
Myth #7: There's no need to buy life insurance for my children.
Truth: Children who die prematurely will still leave behind final expenses
such as medical bills and funeral costs. In addition, buying and keeping
coverage for children while young protects their insurability if they should
develop a health condition later in life that could make it expensive or
impossible to get coverage.
Myth #8: I'm healthy -- I can worry about life insurance when I get older.
Truth: It's usually more cost-effective to buy life insurance when you're
younger. The cost of buying insurance tends to increase as you age. And buying
a policy when you're young and healthy means you'll already have the coverage
if you develop a health condition later that could make you uninsurable.
"Nobody likes to think about their own death or a family member's,"
Francis says. "But we also hate to think about leaving our loved ones to deal
with financial problems at an already difficult time. Taking time to review
your life insurance needs and coverage is one of the smartest things you can
do to protect yourself and your family."
* Source: LIMRA International FastFacts, August 2004
About Colonial Supplemental Insurance
Colonial Supplemental Insurance is the marketing brand of Colonial Life &
Accident Insurance Company. Colonial is a market leader in providing voluntary
insurance to employees and their families through the workplace, along with
personal benefits communication, enrollment capabilities and a commitment to
service. Colonial Supplemental Insurance is underwritten by Colonial Life &
Accident Insurance Company and includes a broad portfolio of insurance
coverages, such as disability, accident, life, cancer, critical illness and
hospital confinement indemnity insurance policies. Similar products, if
approved, are underwritten in New York by a Colonial affiliate, The Paul
Revere Life Insurance Company.
A subsidiary of UnumProvident Corporation, Colonial is based in Columbia,
S.C. and operates in 49 states, the District of Columbia and Puerto Rico.
"Colonial Supplemental Insurance," "for what happens next" and the logo,
separately and in combination, are registered service marks of Colonial Life &
Accident Insurance Company. All rights reserved.
For more information about Colonial's products and services or
opportunities with the company, call (803) 798-7000 or
visit http://www.coloniallife.com .
SOURCE Colonial Supplemental Insurance
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Related links:
http://www.coloniallife.com
CONTACT:
Jeanne Reynolds of Colonial Supplemental
Insurance, +1-803-213-6274, or jdreynolds@unum.com
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