Life insurance, by definition, pays out a lump sum of money upon death or after a specified length of time. Death is a difficult subject for most people to discuss. Furthermore, thinking about the end of life and having insurance for that time appears to be a touchy subject to broach. However, because death is an unavoidable fact, life insurance is a topic that deserves careful consideration for a variety of reasons.
Making sure that people leave some money for their next of kin to manage expenditures after they die, according to William Schantz, is critical. However, there are several frequent misunderstandings and stigmas associated with life insurance. People frequently have misconceptions about how life insurance works, the dynamics of different types of life insurance, and the underlying criteria.
Here are some of the reasons that make people shy away from buying life insurance:
According to William Schantz, People Believe Employer-Sponsored Insurance Is Sufficient
This is a misconception that can go both ways, according to William Schantz. For someone who is single and has no dependents, an employer-provided term life insurance policy may be sufficient. This is not always the case for persons who have a spouse, children, or elderly parents. Individuals who are aware of liabilities that must be paid upon death must purchase supplemental insurance to ensure that those left behind are not put unduly at risk.
People Think Life Insurance Is Not Required for Singles without Dependents
There is no way of knowing how long one will live, and death can strike at any time. That is a factual fact, no matter how unpleasant it may sound. It makes no difference whether a person is single and has no dependents in this regard. Life insurance ensures that when a person’s time on Earth comes to an end, they leave enough money to pay off personal obligations, outstanding medical bills, and burial expenses. You can also give this sum to charity or other causes as a bequest.
Premiums Are Tax-Deductible
In the vast majority of cases, this is not the case. Unless the policyholder is self-employed and the coverage is used to protect the business owner’s assets, personal life insurance premiums are never tax-deductible. The premiums are then deducted from the Form 1040’s Schedule C. Premiums for salaried individuals are not tax-deductible, which is a prevalent misconception among most people who have or want to purchase life insurance.
According to William Schantz, Getting Life Insurance Is Not a Necessity
For persons with substantial assets and no personal debts that would fall upon their next of kin to pay off, skipping life insurance could be a viable option. Most people, however, do not have this luxury, therefore having some sort of insurance is a good idea. People may still choose to overlook the possibility of purchasing life insurance, as per William Schantz, but this can have consequences both now and in the future.
William Schantz is a firm believer in individual life insurance since it can make a major difference in difficult circumstances. It is preferable to pay little monthly premiums for coverage that can deliver benefits when they are most required.