life insurance

6 Life Insurance Myths Debunked: Separating Fact From Fiction

October 26, 2023

Some of the most common misunderstandings about life insurance coverage can prevent individuals from making informed decisions about their financial security. In this blog post, we reveal prevalent myths surrounding life insurance coverage and shed light on the importance of understanding the intricacies of this crucial financial resource.

Myth 1: Life Insurance Is Only for Older Adults

One common misconception is that life policies are only necessary for older people. This notion ignores the benefits of getting life insurance coverage when you are young.

Life insurance is more than just covering funeral expenses; it’s about protecting loved ones from financial burdens in the event of an unexpected loss.

Getting life insurance coverage early comes with lower premiums — providing financial security for your dependents and easing the burden of any debts you might leave behind.

Myth 2: Life Insurance Is Expensive

The belief that life policy premiums are prohibitively expensive may deter individuals from considering it. It's crucial to break down the cost of the policies to dispel this myth.

You can find options for various budgets, and the investment in financial security can outweigh the perceived expense. By working with experts to understand the factors that influence premiums, you can make informed decisions about the type and amount of coverage that suits your needs. Learn more about calculating your life insurance needs and costs here.

Myth 3: Single Individuals Don't Need Life Insurance

Another common misconception is that life coverage is unnecessary for single individuals. While singles may not have dependents in the traditional sense, they still have financial responsibilities.

Addressing student loans, personal debts, and potential future obligations can be overwhelming for those family members left behind. The right life policy can offset remaining expenses.

Myth 4: Life Insurance from Employers Is Sufficient

Many people believe that the life insurance coverage provided by their employer is enough. However, it's crucial to clarify the limitations of employer-provided policies, such as the fact that the employer often owns the policy, meaning coverage may cease if you change jobs. Securing individual coverage ensures a continuous safety net for loved ones, regardless of employment changes.

Myth 5: Health Issues Make Life Insurance Unaffordable

The misconception that health issues make life insurance unaffordable can discourage individuals with pre-existing conditions from seeking coverage. While premiums may be higher for individuals with certain health conditions, there are still viable policy options that provide necessary coverage.

Myth 6: Term Life Insurance Has No Value

Some believe term life has no value because it doesn't accumulate cash value like whole life insurance does. However, term life coverage has benefits, such as affordability and a guaranteed death benefit.

Life insurance is integral to a comprehensive financial plan, but misconceptions can hinder individuals from making informed decisions. By separating fact from fiction, you can take control of your financial well-being and ensure peace of mind for the future. 

Don't let misconceptions keep you from the life coverage that you need. Instead, seek reliable information and make decisions that align with your financial goals and priorities.

About 1891 Financial Life 

At 1891 Financial Life, we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help us to continue the good works that we do in the community. 

Our mission is to provide products and benefits that assist individuals and their families in achieving financial security, while helping to build strong communities by supporting volunteer programs that reflect common shared values. In 2023, 1891 Financial Life was listed by Forbes as one of "The World's Best Life Insurance Companies."