Debunking 4 Common Myths About Life Insurance

Posted on: 28 January 2021

Life insurance, like most types of insurance, is not the most exciting thing to shop for. However, if you don't already have a life insurance policy in place, now is the time to change that. Unfortunately, there are a lot of myths floating around out there about life insurance. Are you falling for any of them?

Myth 1: You Don't Need Coverage Until You're Older

One of the most commonly perpetuated myths about life insurance is that it's not something you need to worry about buying until you're older. In reality, just about anybody could benefit from the peace of mind and financial protection that comes along with having life insurance coverage now. Not to mention, life insurance coverage tends to be a lot more affordable when you're younger—so why wait?

Myth 2: Group Coverage Is Enough

Often times, people will forego shopping for an independent life insurance policy because they already receive group coverage through an employer. While group life insurance coverage is certainly a nice benefit to have, it rarely includes enough protection to serve as a person's sole policy. Meanwhile, group life insurance coverage typically cannot be transferred or kept if you leave your job so that's another thing to keep in mind.

Myth 3: Life Insurance Policies Are Too Expensive

A lot of people will also avoid shopping for life insurance because they assume coverage will be too expensive for them to comfortably afford. In reality, life insurance is often a lot more affordable than you might think—especially when you compare the cost of coverage to the cost of the average funeral and other financial burdens that may be left for your family upon your passing. With the right life insurance policy, you and your loved ones enjoy the peace of mind that these expenses will be covered--and you can't really put a price tag on that.

Myth 4: You Can't Get Coverage With Pre-Existing Conditions

Even if you have pre-existing health conditions, you can still get term or whole life insurance without paying significantly more for coverage. Typically, it only becomes more difficult to secure coverage if you have a very serious health condition (such as a terminal illness), which is all the more reason you're encouraged to buy life insurance coverage at a young age.

By knowing the realities behind these common life insurance myths, you can make sure you and your loved ones are well protected.


Little-known Insurance Tips

While I have had auto insurance ever since I bought my first car at 16 years old and home insurance ever since I bought my first home several years ago, I have to admit that over the years I knew very little about insurance. I tended to just look at the price of the coverage and sign the paperwork without really looking into the pros and cons of each policy. After my friend was in a car accident recently (thankfully, she is okay!) and she said she had to pay for some of the damage to the other vehicle out-of-pocket even though she had a minimum state coverage auto insurance policy, I decided to put a lot of careful research into insurance policies and what they really offer. I want to help others by sharing the information I have learned on a blog. I hope I can help you!