7 Myths about Life Insurance You Shouldn't Believe ...

There are a lot of myths about life insurance. One common myth is that only family heads need an insurance policy. Therefore, some spouses don’t get a policy for themselves. These policies, however, aren't limited to the breadwinner. Think about this: as the breadwinner of your family, wouldn't you like the option of taking a few weeks off from work if your spouse dies? This is possible with a life insurance policy.

Young adults are usually healthy and vibrant, therefore, purchasing a life insurance policy is often the furthest thing from their minds. But even if you're healthy, there are good reasons to purchase a policy. If you're married, a policy can provide your family with financial support in the event of your death, plus the death benefit can cover the cost of your funeral.

I understand this is a touchy subject, as most people don't want to imagine life without their children. However, getting a small policy for your children can be beneficial if the unimaginable happens. If you need to take a leave of absence from work, money from the policy can help cover expenses. Additionally, a life insurance policy can cover their burial and funeral costs.

There are two types of life insurance – whole and term. Whole life insurance is a permanent policy, therefore, it's a bit more expensive. However, term policies are extremely affordable. In fact, a healthy adult can get a term policy for less than a dollar a day.

If you're single and you don't have any dependents, you might feel that you have time to purchase life insurance. Although this might be true, you can't ignore the possibility of an unexpected death. If you were to die tomorrow, how would your family pay your funeral and burial costs? And if you have debts, these must be repaid after you die. If you don't have a policy, your family is left to shoulder this burden.

If you receive life insurance through an employer, you may feel that you don't need to buy an additional policy. However, most employer life insurance policies only provide enough to cover the cost of a funeral and burial. If your family will need financial support after your death, or if you have outstanding debts, you will need an additional policy.

Life insurance isn't something you buy and forget about. As you get older, your life insurance needs may change. Let’s say you took out a policy while single. If you're now married with children, the death benefit on your existing policy might not be sufficient for your family. And since term policies eventually expire, you should revisit your life insurance needs every few years, and then up your coverage as needed.

Life insurance is just as important as homeowners insurance, auto insurance and health insurance. If you don't have a policy, make 2014 the year that you purchase coverage. Have you heard any other life insurance myths?