Life Insurance Myths & Facts


Life insurance is unnecessary for older people.

Many older people actually need more life insurance. The reasons for this vary but could include less time to make up for a loss of income, inflation cutting into the value of an existing life insurance benefit, the need for estate planning or business ownership that requires succession planning.


Only people with kids need life insurance.




While it is common for an individual to need a greater amount of life insurance when dependents are in the picture, even people without children may leave behind joint debts, funeral expenses and other bills that need to be paid. Life insurance can also provide a spouse with income replacement during a difficult time and serve as part of a diversified investment portfolio.


Life insurance is only necessary for older people.

Younger individuals may be less likely to die, but they are much more likely to leave behind a younger family that may struggle financially without the help of income replacement from a death benefit. It’s also a great time to buy because younger people will get better rates. And by purchasing a policy, they are guaranteed the existing coverage if something happens to them.


All life insurance policies are the same.

Each life insurance product will have its own set of benefits, so it is crucial for people to consider what they want out of their policy and match that with a specific product that can best meet their needs. But this doesn’t just apply to the choice of term, whole, fixed universal or variable universal. Policies within each of these categories can vary significantly. This is why life insurance should never be selected based on price alone.


Life insurance is too expensive.

There are a lot of life insurance options out there. It may be simpler than many people think to find a product that meets their needs and their budget. And typically, the younger they are, the less expensive a policy will be.


People with health problems can't get life insurance.

These individuals may not be able to obtain a policy for the same price as a healthy adult, but that doesn’t mean they can’t get coverage. Many companies have a thorough underwriting process involving adjusted rates and special considerations for these situations.


The life insurance through my employer is enough.

 In some cases, this may be true—as long as there are no dependents or major debts. But the potential for job loss can leave people without coverage at an inopportune time. 


Term life insurance is always a better choice than whole or universal life insurance.

While the premium for a term life policy can be less expensive in the short term, the cost of coverage with other types of policies that provide a cash value can be much less over time.


Life insurance doesn't need to be updated.

Life changes. And, so do life insurance needs. That’s why it’s important for individuals to review their coverage periodically to make sure no updates are needed.

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