This content is sponsored by MOAA Insurance Plans, administered by Association Member Benefits Advisors (AMBA).

Let’s face it: Buying life insurance is not at the top of anybody’s list of fun things to do. Deciding on the right type of policy, how much you need, and where to buy it can be confusing. It’s easy to find reasons to put it off — or to tell yourself you don’t really need it.

Having life insurance, however, can be an important part of any financial plan, and no one should let a misconception stand in the way of purchasing coverage. So let’s dispel some of the common reasons people find to avoid buying life insurance:

'It’s very expensive.'

Actually, it’s not. A recent study conducted by LIMRA revealed that more than half of Americans overestimate the cost of life insurance — by as much as three times the actual premium amount.* What’s more, buying life insurance through an association, such as MOAA, lets you take advantage of group rates that are often not available to the general public.

'I already have coverage through my employer.'

That’s a good start, but the amount of coverage you have with your employer-provided plan may not be enough for your needs. Also, keep in mind that if you change jobs, you may lose your coverage. When you purchase coverage on your own, it stays with you from job-to-job. That’s the case with the “portable” plans sponsored by MOAA.

'Rates go up or coverage goes down as you get older.'

This is true with some types of life insurance, particularly plans intended to pay funeral costs or other final expenses. Level term life plans, however, maintain the same coverage level for as long as the plan is in effect. With MOAA’s Group Level Term Life plans, you can lock-in your coverage amount for up to 20 years, depending on age, with rates designed to remain level during that period.** (Check out “LIFE HACKS: 7 ways MOAA Group Level Term Life Insurance helps to simplify your financial planning.”)

'You don’t need life insurance if you don’t have kids.'

This is a pretty common misconception. Just because you don’t support anyone financially doesn’t mean you should forego life insurance. If you split household bills with a spouse or partner, or if you don’t want to leave behind financial obligations, it’s wise to have coverage. Another thing to keep in mind: Life insurance is much less expensive when you are young and healthy. Buying at a younger age, even if you don’t yet have a family, can save you money in the long run.

'I have plenty of savings, so I don’t need coverage.'

While this may seem like a sound argument, there’s danger in relying solely on your nest egg.  Consider the worst-case scenario: You die while your family still depends on your income. Unless you’ve saved enough to support your dependents until they’re adults and have enough to pay off your debts, life insurance is a must.

Here’s the bottom line: there’s no reason to put off buying the life insurance you need to help protect your family’s future. If you’re considering purchasing or increasing coverage, take advantage of your access to affordable MOAA-sponsored life insurance plans. Visit moaainsurance.com for more details. 

*2021 LIMRA Insurance Barometer Study. LIMRA is a worldwide organization that provides research and education for the financial services industry.  

**The initial premium will not change for the level term period unless the insurance company exercises its right to change premium rates for all insureds covered under the group policy with 60 days advance written notice.