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Debunking the 4 Biggest Misconceptions About Life Insurance

Article written by Nicol Rubin of 

Life insurance provides essential protection for our families. Life insurance is something that we all need, but according to MarketWatch, only 59% of Americans have some form of it. Not having the protection that you need can be devastating to your family. Unfortunately, there are several risky misconceptions about life insurance that may prevent you from getting coverage to protect your hard-earned savings and the future of your loved ones. Here are some of the most common false beliefs about life insurance and how they can affect you.


You Can’t Get Life Insurance If You Have Health Issues

While people in good health typically get the best rates on life insurance, having health issues does not mean you will be denied coverage. Most people can buy life insurance unless they have very serious health conditions. In many cases, there are ways to get some form of life insurance even if you have a terminal illness. That said, health insurance companies are more likely to insure you if you engage in healthy habits and can prove that you are managing your conditions properly.

Along these lines, there are also a few misconceptions about life insurance health assessments. Life insurance medical exams often include both a verbal questionnaire and a sample collection which may involve taking blood. Life insurance blood tests help insurance companies look for markers of health conditions, like high cholesterol or blood glucose, and indicators of unhealthy habits, like nicotine or drug use. The blood tests themselves are quick and painless, and the entire assessment only takes about 20 minutes.


Life Insurance Is Not Available to Seniors

There are many reasons why you might need life insurance in your senior years, such as a spouse or family member that relies on you financially. Although life insurance rates increase as you get older, getting coverage over 60 isn’t impossible, and seniors in good health do have access to some affordable term life policies. Finding reasonable rates might just take a little shopping around. In addition to securing an insurance policy, take the time to gather together all of the other important documents that your loved ones will need—like your Living Will and Power of Attorney—if they have to act on your behalf in the future.


Coverage Through Your Employer Is Enough

According to CNBC, most Americans with life insurance have it through a group plan rather than an individual policy. But employer-provided life insurance can give you a false sense of security. Many times, this coverage is not enough. It’s common for group plans to offer just one or two times your annual salary as an insurance benefit, but this is far too low for anyone with a mortgage, children, or a spouse that relies on them. The general rule of thumb is coverage for 10 to 20 times your salary.


The Young and Healthy Don’t Need It

People who are young and healthy should strongly consider life insurance, especially if they have a mortgage or dependents. Whether or not you’re the breadwinner of the household doesn’t matter. Replacing the services provided by a deceased homemaker, like childcare and cleaning, can be very expensive and stressful for the surviving spouse. Even if you are childless and single, you may leave behind significant expenses for your parents to cover if you were to die suddenly. It can be devastating for parents to have to pay funeral costs, unpaid medical expenses, and student loan debt while grieving. Plus, locking in a low-rate insurance plan when you’re young will save you a lot of money!

Avoid falling victim to these common myths about life insurance. While you may not think you need coverage, it’s far more likely that life insurance would be highly beneficial to your family if you were to pass away unexpectedly. Whether you’re a healthy young person with student loans or a senior with a chronic condition, it’s a good idea to start looking at your coverage options as soon as possible.

Article written by Nicol Rubin of 

1 thought on “Debunking the 4 Biggest Misconceptions About Life Insurance”

  1. Thanks for the blog, I was also having misconception about the life insurance that I am fit and healthy enough and can protect my family and earnings. The opened my eyes and gave a new way of thinking and looking into the things.

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