Common life insurance myths you can’t afford to fall for

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Believing these misconceptions can lead to regret.

Key points

  • Life insurance is a very important purchase.
  • Many people succumb to myths that prevent them from being covered.
  • Contrary to popular belief, life insurance can be affordable and you don’t need perfect health to purchase coverage.

Life insurance is one of the most important purchases a person can make. But unfortunately, some people are held back from getting the policy they need because they succumb to some common misconceptions. To avoid this, it’s important to learn the realities surrounding these four big life insurance myths.

Myth #1: You don’t need insurance if you don’t have dependents

One of the biggest misunderstandings about life insurance is that it is important to only purchase coverage in circumstances where there are dependents relying on the potential policyholder’s income.

Here’s the reality: Many people end up with someone who depends on them for income or services. This could be a spouse, children or elderly parents. And a person who waits until they have dependents may find themselves developing a pre-existing condition before they get coverage that ends up making it much harder to get an affordable policy.

This is why young people should buy insurance when they are still young and in excellent health, even if no one “needs” them yet. By securing timely coverage, they can protect their loved ones in the future.

And even those who never end up with dependents may still want to have a policy that ensures their funeral can be paid for without others having to deal with the financial burden of the final your expenses.

Myth #2: Insurance is expensive

Another big misconception is that life insurance is expensive. In reality, it is usually very affordable to purchase a term life insurance policy. This is especially true if purchased at a younger age, but even older people can still get coverage for a reasonable amount – especially after shopping around for coverage.

Also, while it may seem expensive to pay the premiums, the policy can provide peace of mind and save surviving loved ones from financial disaster in the event of an untimely death, so it’s usually worth paying for.

Myth #3: Term policies are a waste of money

One big reason many people don’t get coverage is because they have the mistaken belief that term life policies are a waste of money. This misconception comes from the fact that the policy will only pay out if death occurs during the term of the cover. It can feel like a waste to have paid premiums for 20 or 30 years only to have no death benefit paid in the end.

These premiums are no loss though. They protect against the risk of premature death, which can financially ruin surviving loved ones. The best-case scenario is that the coverage will eventually not be needed—just as the best-case scenario for auto insurance is that you never get into a car accident. But it’s still important to have coverage in case something goes wrong.

Myth #4: You need perfect health to get coverage

Finally, one final myth that prevents people from buying life insurance is the mistaken belief that only those in perfect health can obtain a policy. The reality is that almost anyone can find some type of coverage, even if it’s just a guaranteed problem policy.

Instead of falling for these myths, shop around for life insurance and explore all the options available to make sure misconceptions don’t get in the way of important protection for loved ones.

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