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Five life insurance myths, and why they’re totally wrong

Life insurance can be a touchy subject.

No one wants to think about their own death, or what will happen to their family after they’re gone. But if you don’t talk openly about life insurance, you could get the wrong impression about it.

So let’s clear the air a bit. These five life insurance myths need to go away forever:

1. Young adults don’t need life insurance

When you’re in the prime of your life, life insurance can seem unnecessary. People often buy into the idea that they don’t need coverage when they’re young, healthy and single.

But if you’re married and have a family - or even just thinking about starting one - life insurance could be helpful. That’s especially true if you have a mortgage, student loans or other kinds of debt that will need to be paid after you’re gone.

The truth is getting a policy when you’re young could be a great move. Your age and health present less risk to insurance companies. And you may be offered lower premiums because of it.

Setting up a life insurance policy in your 20s could save you money on your coverage over the long haul.

2. Life insurance is only for healthy people

If you have a pre-existing medical condition, you might think life insurance isn’t an option.

Guaranteed Acceptance could be the right plan for you if you have chronic health issues. No one can be denied coverage with a Guaranteed Acceptance policy, and you don’t need to go through a medical exam to qualify.

3. Stay-at-home parents shouldn’t get life insurance

If your entire family relies on a single person to pay for your home, car, groceries and other necessities, you might think only the breadwinner needs life insurance. But life insurance is just as important for stay-at-home parents.

End of life costs - medical bills, funeral costs, etc. - can add up fast. And it’s hard to budget for everything in advance. Even if your family doesn’t count on you for financial support right now, the payout from a life insurance policy could help them pay any bills that are left behind after you’re gone.

Also, who’s going to take care of the kids if something happens to a stay-at-home parent? You might need to pay for daycare or a nanny, which can add up fast. On average, you can expect to pay somewhere between $9,000 and $9,600 on daycare each year.  And that’s just for one child.

4. Anyone over 60 is too old to qualify

It may be true that premiums are likely to go up the longer you wait to get coverage. But this particular life insurance myth doesn’t tell the whole story. You can still get a policy when you’re 60 or older.

Guaranteed Acceptance plans can be good options for people who wait until their 60s or 70s to sign up for life insurance. TruStage™ Guaranteed Acceptance Whole Life policies will approve anyone between the ages of 45 and 80, even if you’ve been denied coverage in the past due to your age or health.

5. Life insurance covered by your employer is good enough

There are a lot of problems with employer-provided life insurance. For one, the payouts can be pretty bare. The biggest issue, though, is that your coverage might not continue if you move on to another company.

With a separate life insurance plan, you don’t have to worry about whether or not your policy will follow you to a new job. You’re always covered.

By focusing on the life insurance facts, we hope we’ve finally put these myths to rest. Don’t wait any longer to get coverage today.

How to learn more about life insurance

Life insurance may seem complicated, but it’s not that hard once you know the basics. Of course, we are happy to help. You can also use the TruStage Life Insurance Calculator to compare different types of insurance and learn more about your options.

Keep reading:

What are the different types of life insurance?
It may seem simple but understanding insurance types can also be confusing. We’ve broken down a few of the most common types of life insurance policies to simplify things.

What should I look for in a reputable insurance company?
Cost isn’t everything in choosing the best life insurance policy. There’s also a lot to be said about choosing an insurance company you can really trust.

How much life insurance do you need?
This article walks you through several popular methods for estimating how much life insurance you need to ensure your family’s future.

Life insurance when you're young
It’s tempting to put off buying life insurance when you’re young, especially if you’re just starting out and money is tight. But there are two good reasons to buy life insurance now instead of waiting.