Debunking Life Insurance Myths: What You Need to Know

Shawn Plummer

CEO, The Annuity Expert

Life insurance is a powerful financial asset that offers you and your family peace of mind knowing they will be taken care of. Unfortunately, many life insurance myths can lead to incorrect decisions if not debunked. We have made it our mission to clear up these ten common misconceptions so you can make an informed decision when considering life insurance for yourself or loved ones.

Myth 1: Life insurance is too expensive

One of the most common myths about life insurance is that it is too expensive. However, life insurance costs depend on several factors, including age, health, and the coverage you need. Moreover, many life insurance policies offer flexible payment options, such as monthly, quarterly, or annual, to make them more affordable. Additionally, you can choose a term life insurance policy, which provides coverage for a specific period, such as 10, 20, or 30 years, and is typically less expensive than whole life insurance.

Myth 2: I don’t need life insurance if I’m young and healthy

It is a common misconception that only older people or those with health issues need life insurance. However, life insurance is necessary for people of all ages and health conditions. Young, healthy individuals can take advantage of lower life insurance premiums, and if something unexpected happens, their loved ones will have financial security. Furthermore, the younger you are when you purchase life insurance, the lower the cost, making it a wise investment for your future.

Myth 3: Life insurance is only for breadwinners

Another myth about life insurance is that it is only necessary for the primary breadwinner in a household. However, anyone who provides financial support to their loved ones, whether they are stay-at-home parents, retirees, or students, can benefit from life insurance. In addition, life insurance can help cover expenses, such as mortgage payments, education, and living expenses, in the event of the policyholder’s death.

Myth 4: Life insurance is only necessary if you have children

While life insurance is essential for parents with young children, it is not limited to them. Life insurance can also benefit single individuals, as it can help cover end-of-life expenses and provide financial security for their loved ones.

Myth 5: I can buy life insurance from my employer

Many employers offer group life insurance as a benefit, but it is not the same as individual life insurance. Group life insurance is often limited in coverage and may not provide the level of protection you need. Additionally, group life insurance may not be portable, meaning you cannot take it with you if you leave your employer. Therefore, it is essential to consider purchasing an individual life insurance policy, which provides customized coverage and protection for you and your loved ones.

Myth 6: I don’t need life insurance if I have enough savings

While savings can provide financial security, they may not be enough to cover expenses in the event of the policyholder’s death. Life insurance can help fill the gap and provide additional financial support for your loved ones. Life insurance can also help cover expenses, such as funeral costs, which can be substantial.

Myth 7: I can buy life insurance at any age

While you can purchase life insurance at any age, the cost of coverage increases as you get older. It is recommended to purchase life insurance when young and healthy, as this can help you take advantage of lower life insurance premiums.

Myth 8: I don’t need life insurance if I have a will

While a will can provide instructions for the distribution of your assets after your death, it does not provide financial security for your loved ones. Life insurance can provide a lump sum of money that can be used to cover expenses, such as mortgage payments and education costs, in the event of your death. Additionally, life insurance can help ensure that your loved ones are not burdened with debt or financial stress during an already difficult time.

Myth 9: I don’t need life insurance if I have a retirement plan

Retirement plans, such as 401(k)s and IRAs, can provide financial security during retirement, but they may not be enough to cover expenses in the event of the policyholder’s death. Life insurance can provide a tax-free lump sum of money that can be used to cover end-of-life expenses, pay off debt, or provide financial support for your loved ones.

Myth 10: Life insurance is a scam

Life insurance is not a scam but an invaluable fiscal asset that guarantees monetary stability and mental comfort for you and your family. However, to provide maximum secureness to policyholders, the government supervises life insurance enterprises strictly, so they must adhere to tight regulations. As such, when acquiring life assurance, you must collaborate with a licensed insurance agent and thoroughly analyze your choices and coverage requirements.

Myth 11: Life insurance isn’t a high priority for you.

Many individuals believe they don’t need life insurance. From young people to stay-at-home parents to older individuals, there is sometimes a feeling that life insurance isn’t necessary at particular times in one’s life. However, life insurance may be helpful no matter where you are or your position.

There are a lot of factors to consider. Children’s education, mortgage payments, or replacement income are a few examples. Losing your primary earner unexpectedly can be pretty painful. Here are some things to think about, depending on your current situation.


When you are younger, obtaining a life insurance policy is often simpler. Premiums are frequently less expensive, and you’ll have less to pass on to your beneficiaries if you buy later in life. However, the cost of purchasing life insurance increases as you get older.

Even if you’re single without dependents and do not want to be a caretaker, making arrangements ahead of time might aid your loved ones in dealing with demanding expenditures if you pass away. Life insurance benefits can help pay for medical and funeral expenses and assist your family pays off your debts by providing a monthly income.

If you’re single and run a business, life insurance money might assist your business partner in keeping the company going or help a co-signer pay off outstanding debts.

Stay-at-home parents

While you won’t be paid a traditional wage, the services you offer, such as housekeeping, chores, shopping, childcare, transportation, and cooking, are worth thousands of dollars. If you die, life insurance benefits might help your surviving family members cover some of these expenses and make a difficult transition less painful for them.


When you’re young, purchasing life insurance is recommended. However, buying a policy after you’ve reached adulthood allows you to leave an inheritance to your loved ones, relieve the family strain of final costs like funeral expenses, assist with paying off any debts you leave behind, and so on.

Many life insurance plans have the potential to provide more than just a death benefit. Living benefits, for example, may be used to access part of your life insurance policy to help pay for the medical expenses associated with a qualifying condition.

Myth 12: I’m not allowed to buy life insurance because of my health conditions.

Yes, previous medical issues might raise policy premiums, but that does not imply insurance is out of reach. For example, you can still buy term life insurance even if you have various health issues, including high-risk diseases, because you must be healthy enough to work.

Conducting a brief medical history check and discussing your options is accessible in most circumstances.

Myth 13: The process of purchasing life insurance is too complicated.

Life insurance may appear to be a daunting process, but it does not have to be.

You can speak with an insurance agent with the know-how and techniques to assist you in developing a strategy that meets your financial objectives while also taking advantage of life insurance.

Even if you can handle your life insurance purchasing independently, accessing the entire life insurance coverage or navigating your money strategy may be tricky.

The Annuity Expert (a licensed life insurance agency) can offer knowledgeable guidance and direction. There are many choices, and having an experienced advocate to assist you in achieving your specific objectives is critical.

Myth 14: When your insurance policy expires, it is easy to renew.

When your term policy is up, your health may make it difficult to acquire another one. In addition, renewing might be too expensive because premiums generally rise with age, so it’s crucial to obtain term insurance as soon as possible rather than later. If you need life coverage after your term policy expires, consider purchasing a cash-value plan or converting it to permanent life insurance.

Next Steps

Overall, it is critical to understand the importance of life insurance and sort fact from fiction. Life insurance can provide financial security and peace of mind for families, which makes them invaluable resources. Without coverage, you could leave behind a legacy of unpaid debts or a lack of resources for those you care about. Let us help you make an informed decision about buying the best policy suited to your unique needs. 

Don’t hesitate any longer! Reach out today and contact us to start planning with a quote. The future is just ahead, and it promises to be full of joy and adventure; let’s ensure that you have a plan in place so that your loved ones will be well taken care of should anything happen to you. Let us put our expertise to work for you so your future can remain as bright as ever!

Life Insurance Myths Debunked

Need Help Getting Life Insurance Coverage?

If you have a preexisting medical condition and want to buy life insurance, you will need help from an expert. This person can help ensure you get coverage, so you don’t get declined.

Warning: Applying for life insurance without a medical exam can be risky. If you have declined coverage, it could be at least two years before you can get any life insurance.

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Have You Been Declined Life Insurance Coverage Before?

Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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