AmericaDirect college

FAQ's

Top 12 Insurance Myths
1. Employee insurance coverage is enough.
Wrong! Most people need far more insurance than employee plans provide, and usually, you can't take the insurance when you leave the company.

2. You should buy the most insurance you can afford.
Not true! Any reputable insurance company will recommend an amount of coverage based on your specific financial needs, like your mortgage, tuition
and daily living expenses. What you can afford has nothing to do with what
you need!

3. Everyone needs life insurance.
No! If there is no one who will suffer a financial loss in the event of your death, having a life insurance policy may not make sense! If you have no dependents or a mortgage, you may not need life insurance. Plain and simple! Talk with an America Direct insurance advisor, give them some background on your situation, and they can help confirm whether life insurance is really necessary.

4. I don't need insurance if my spouse stays at home.
Well, who is going to cover the cost of what your spouse does at home, like childcare, food preparation, school transportation, home management, and so much else. This could add up to tens of thousands of dollars annually!

5. Whole life insurance is better because I get my money back.
Nope, not usually. There are typically other investment opportunities that would produce a higher return than Whole Life. Unless you have money to spare, whole life is rarely the right choice.

6. The longer I wait to buy insurance, the more I save.
Actually, the best time to buy life insurance is when you are young and healthy. Later, it can be much more expensive and harder to obtain. It makes far more sense to get life insurance when you are eligible to receive the most favorable rates.

7. It's cheaper to buy risk-specific policies, like cancer or flight insurance, instead of term life insurance.
Not really. You may never get cancer or be involved in an airline crash but you may eventually get heart disease, for example. A policy that covers everything will end up costing less in the long run.

8. Once the kids are off to college, I don't need life insurance any more.
Life insurance is for many reasons, not just the cost of college. And remember, you may have the opportunity to reduce the current coverage on a policy - reducing your costs, but still insuring that your spouse or dependent parent won't have to struggle with daily costs if something happens to you.

9. Once I buy insurance, I don't have to think about it again.
No. Any major life change, a death or divorce, a new job---should trigger a policy review. You should speak to your insurance advisor on a regular basis.

10. If I die during the first two years, the insurance company won't pay.
This is not true! The two-year waiting period only applies to specific situations, like suicide or misrepresentation when you purchase the policy.

11. If I have diabetes, insurance is out of the question.
Well, you might be pleasantly surprised. AmericaDirect works with insurance companies that specialize in helping people who have Type I and Type II diabetes and/or CAD.

12. Term life isn't a good choice because I just lose my coverage when the term is up.
And the answer is no! You have many options at that time. You may be able to review your policy or convert it to another type of life insurance, often without a physical, depending on your life situation at the time of the renewal. There is also something called a Return of Premium policy which would pay you back at the end of the term while you’re still living! Talk with an America Direct insurance advisor, and they can provide you with options .