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Ryan S. Christensen, CFP®
Ryan S. Christensen, CFP®
Kades-Margolis Financial Advisor of GWN Securities, Inc
https://4kmc.com/kades-margolis-advisors/ryan-christensen/ 717-725-3460

Finances, and particularly investing and retirement planning, can be a little overwhelming and confusing.  My goal is to simplify the process and make it easier to comprehend. The key to being a successful investor is knowledge, patience and discipline.  I help my clients to understand the key role they play in their financial future."

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Life Insurance Myths: Debunked

Insurance
Life Insurance Myths Debunked! Have you ever heard someone claim they don't need Life insurance? Or that insurance is too expensive? Maybe they've even said, with certainty, that all the coverage they need is provided through their employer. If so, they may have fallen prey to some common life insurance myths.Life Insurance Myths Debunked! Have you ever heard someone claim they don't need Life insurance? Or that insurance is too expensive? Maybe they've even said, with certainty, that all the coverage they need is provided through their employer. If so, they may have fallen prey to some common life insurance myths.Myth #1: If you’re single or married without children, you don’t need life insurance. Myth Debunked. Even if you don’t have a spouse or dependents, life insurance is still important. You can use it to leave a legacy or to help pay off any debts you owe. The right life insurance policy can help you protect your loved ones and support your community long after you’re gone. (1)Myth #1: If you’re single or married without children, you don’t need life insurance. Myth Debunked. Even if you don’t have a spouse or dependents, life insurance is still important. You can use it to leave a legacy or to help pay off any debts you owe. The right life insurance policy can help you protect your loved ones and support your community long after you’re gone. (1)Myth #2: Life insurance is too expensive. Myth Debunked. You may be surprised to learn that many life insurance strategies are quite approachable. Starting with a policy that fits your budget can make sure you are protected today, while letting you purchase additional coverage down the road if you need to. (2)Myth #2: Life insurance is too expensive. Myth Debunked. You may be surprised to learn that many life insurance strategies are quite approachable. Starting with a policy that fits your budget can make sure you are protected today, while letting you purchase additional coverage down the road if you need to. (2)Myth #3: I have life insurance through my job. If I leave or retire, I’ll bring my policy with me. Myth Debunked. Unfortunately, employer-offered life insurance usually isn’t portable. So, when you leave your job, you may also be leaving your life insurance behind. By purchasing your own policy, you can take it with you. Another bonus: you may qualify for more personalized coverage. (3)Myth #3: I have life insurance through my job. If I leave or retire, I’ll bring my policy with me. Myth Debunked. Unfortunately, employer-offered life insurance usually isn’t portable. So, when you leave your job, you may also be leaving your life insurance behind. By purchasing your own policy, you can take it with you. Another bonus: you may qualify for more personalized coverage. (3)Myth #4: My beneficiaries will have to pay income tax on the proceeds from my life insurance policy. Myth Debunked. Proceeds received as a beneficiary aren’t generally counted toward gross income. However, any additional interest payments may be taxed. Keep in mind that this article is for informational purposes only. It’s not a replacement for real-life advice, so make sure to consult your insurance or tax professional for more information. (4)Myth #4: My beneficiaries will have to pay income tax on the proceeds from my life insurance policy. Myth Debunked. Proceeds received as a beneficiary aren’t generally counted toward gross income. However, any additional interest payments may be taxed. Keep in mind that this article is for informational purposes only. It’s not a replacement for real-life advice, so make sure to consult your insurance or tax professional for more information. (4)Myth #5: I’m a full-time parent and draw no income. Surely I don’t need life insurance. Myth Debunked. As a full-time parent, you provide valuable services that could be expensive to replace. If you pass away, the benefits from a strong life insurance policy may help ensure that your family will continue to receive childcare, transportation, home maintenance, and other necessary supports. (5)Myth #5: I’m a full-time parent and draw no income. Surely I don’t need life insurance. Myth Debunked. As a full-time parent, you provide valuable services that could be expensive to replace. If you pass away, the benefits from a strong life insurance policy may help ensure that your family will continue to receive childcare, transportation, home maintenance, and other necessary supports. (5)Myth #6: I’m already retired; it’s too late for life insurance. Myth Debunked. Maintaining life insurance post-retirement can be a wise move. Depending on your policy, you may have access to living benefits, which can support you if you need extended care or contract a terminal illness. Life insurance can also be a means of transferring wealth. What kind of legacy do you want to leave behind? (6)Myth #6: I’m already retired; it’s too late for life insurance. Myth Debunked. Maintaining life insurance post-retirement can be a wise move. Depending on your policy, you may have access to living benefits, which can support you if you need extended care or contract a terminal illness. Life insurance can also be a means of transferring wealth. What kind of legacy do you want to leave behind? (6)Several factors will affect the cost and availability of life insurance, including age, health, and the type and amount of insurance purchased. Life insurance policies have expenses, including mortality and other charges. If a policy is surrendered prematurely, the policyholder may also pay surrender charges and have income tax implications. You should consider determining whether you are insurable before implementing a strategy involving life insurance. Any guarantees associated with a policy are dependent on the ability of the issuing insurance company to continue making claim payments. 1. Coverage.com, April 28, 2020. 2. Allstate.com, December 2019. 3. Coverage.com, April 28, 2020. 4. IRS.gov, September 20, 2019. 5. TheLadders.com, September 11, 2019. 6. USNews.com, February 27, 2020.Several factors will affect the cost and availability of life insurance, including age, health, and the type and amount of insurance purchased. Life insurance policies have expenses, including mortality and other charges. If a policy is surrendered prematurely, the policyholder may also pay surrender charges and have income tax implications. You should consider determining whether you are insurable before implementing a strategy involving life insurance. Any guarantees associated with a policy are dependent on the ability of the issuing insurance company to continue making claim payments. 1. Coverage.com, April 28, 2020. 2. Allstate.com, December 2019. 3. Coverage.com, April 28, 2020. 4. IRS.gov, September 20, 2019. 5. TheLadders.com, September 11, 2019. 6. USNews.com, February 27, 2020.

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