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May 13, 2021

7 Life Insurance Myths and the Actual Truth

Educate your clients on these common misconceptions about life insurance.

Life insurance can sometimes be hard to understand. Do people really need it and if so, how much? There are a lot of common misconceptions out there about life insurance, and below are some of those common misunderstandings and information you can share with your clients and prospects.

7 Life Insurance Myths and the Actual Truth
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Myth #1: I don’t need life insurance. I have some through my job.

Truth: Life insurance offered through your employer is a great benefit–while you have it. If you leave your company, the life insurance coverage doesn’t leave with you. Also, the coverage amount is usually a flat amount or equal to a year’s salary and that amount may not be enough–for long enough. While you may have the option to convert your work policy to a permanent policy or buy multiples of your salary, a separate life insurance policy stays with you no matter who you work for. To figure out how much you might need, try this simple calculator.

Myth #2: Life insurance is too expensive.

Truth: There are many different types of life insurance to meet your needs and your budget. Some people only want to provide a death benefit for final expenses while others want to leave behind a pool of money for the kid’s college, paying off the mortgage and charitable giving. It’s up to you how much coverage you want.

Myth #3: Only healthy people can get coverage.

Truth: Life insurance companies offer coverage to people with a range of common medical conditions including high blood pressure. The coverage may cost more than someone in perfect health so it’s important to be up-front with health issues. Life insurance companies have medical underwriters and medical directors on staff so your information is with people who understand your health conditions.

Myth #4: I don’t need life insurance because I don’t have any dependents.

Truth: Even if you aren’t married or have children, life insurance helps pay for final expenses and settle estate debt like medical bills, taxes, etc. It’s also one of the easiest and most amazing ways to leave a legacy. The benefit can be directed to fund a favorite charity or cause, pay down family members’ mortgages, or send nieces, nephews to college. The legacy is yours and the possibilities are endless.

Myth #5: I’m young and don’t plan on dying anytime soon.

Truth: No one plans on dying anytime soon! Life insurance is the type of product you buy before you need it. You don’t wait until your cell phone is stolen or falls in the sink to insure it and you don’t wait until you are sick or old to buy life insurance.  The time to purchase life insurance is when you are young and healthy. Your wallet and loved ones will thank you. Trust us.

Myth #6 People have to wait until I die to get any benefit from the policy. 

Truth: Many types of life insurance policies have extra benefits called living benefits1 that allow you to use the policy while you are alive. Living benefits on a life insurance policy allow you to access the death benefit, while you are alive, if you have a heart attack, stroke, cancer, cystic fibrosis, ALS, and other illnesses and injuries. Make sure you ask your agent about these benefits and what conditions qualify on the policy you are interested in.

Myth #7: Only the breadwinner in the family needs life insurance.

Truth: The life insurance benefit covers more than just a missing salary. Parents/spouses who aren’t the breadwinners still contribute financially either through a smaller paycheck and/or household duties, such as childcare. According to Care.com, the average weekly cost for a child care center was $215 in 2019. The average weekly cost for after-school care was $243, and the average weekly cost for a nanny was $565. Based on these figures, a family could pay an average of $11,180 to $29,380 a year per child for childcare. And child care costs are only rising over time.2

Talking to your clients and prospects about these common myths can help them better understand the importance of life insurance.


1Payment of Accelerated Benefits will reduce the Cash Value and Death Benefit otherwise payable under the policy. Receipt of Accelerated Benefits maybe a taxable event and may affect your eligibility for public assistance programs.  Please consult your personal tax advisor to determine the tax status of any benefits paid under this rider and with social service agencies concerning how receipt of such payment will affect you.  Riders are supplemental benefits that can be added to a life insurance policy and are not suitable unless you also have a need for life insurance.  Riders are optional, may require additional premium and may not be available in all states or on all products.  This is not a solicitation of any specific insurance policy.

2Care.com’s Cost of Care Survey, 2019