Life insurance is surrounded by misconceptions that can prevent families from getting the protection they need. Let us debunk seven of the most common myths so you can make informed decisions.
Myth 1: Life Insurance Is Too Expensive
The Truth: Life insurance is often more affordable than people think. A healthy 30-year-old can get a $500,000 term policy for around $25-35 per month—less than many streaming subscriptions combined.
The key is shopping around and understanding that term life insurance offers substantial coverage at lower costs than whole life policies.
Myth 2: I Am Young and Healthy—I Do Not Need It Yet
The Truth: Being young and healthy is actually the best time to buy life insurance. Premiums are based on your age and health at application, so waiting only increases costs.
Plus, unexpected health issues can arise at any age, potentially making coverage more expensive or even unavailable later.
Myth 3: My Employer Coverage Is Enough
The Truth: Employer-provided life insurance is a great benefit, but it typically only covers 1-2 times your annual salary—far less than most families need.
Additionally, employer coverage usually ends when you leave the job, leaving you unprotected during career transitions.
Myth 4: Stay-at-Home Parents Do Not Need Coverage
The Truth: Stay-at-home parents provide services worth $150,000 or more annually—childcare, cooking, cleaning, transportation, and more.
If a stay-at-home parent passed away, the surviving spouse would need to pay for these services while potentially reducing work hours. Coverage for both parents is essential.
Myth 5: Life Insurance Is Only for People with Dependents
The Truth: While protecting dependents is a primary reason for life insurance, it is not the only one. Coverage can also:
Myth 6: The Application Process Is Complicated
The Truth: While some policies require medical exams, many insurers now offer simplified or no-exam options. The application process has become much more streamlined.
Even traditional applications typically involve a simple health questionnaire and a quick medical exam that can be done at your home.
Myth 7: Once I Buy a Policy, I Am Stuck with It
The Truth: Life insurance policies can be adjusted as your needs change:
The Bottom Line
Do not let myths prevent you from protecting your family. Life insurance is more accessible, affordable, and flexible than many people realize.
At UPointLife, we are committed to providing clear, honest information so you can make confident decisions. Have questions? We are here to help—no pressure, just education.
