Top 5 Life Insurance Misconceptions

Top 5 Life Insurance Misconceptions

by Leslie Freeland, January 1, 2017

Do these life insurance misconceptions sound familiar?

“I have enough life insurance coverage through work.”

“I’m young and single and don’t need life insurance.”

“Life insurance is just too expensive.”

“I’m not healthy enough to get life insurance.”

“Life insurance is life insurance, no matter who I buy it from.”


These and other common life insurance misconceptions can be just a few of the reasons why too many of us put off getting the life insurance we need.

In fact, according to the Life Insurance Marketing and Research Association (LIMRA), 54% of consumers find being able to understand the details about how life insurance works a challenge, making it difficult to make informed buying decisions. Asurea is your Simple Solution when it comes to understanding the confusing and overwhelming life insurance landscape, so follow along as we expose 5 life insurance misconceptions.

My policy through my work is enough.

Having some life insurance is better than having none at all. What you may not know is that the life insurance you have with work is typically meant to be supplementary coverage. Generally, these employer benefit policies are only one or two times your annual salary, falling short of what most families need.

You may also find that the coverage you have through work is limited to accidental death and dismemberment or a small burial insurance policy. And remember, if you were ever to leave your current employer, you can’t take your life insurance policy with you.

I don’t need life insurance because I’m young, single and have no dependents.

Has anyone cosigned on your behalf for a vehicle or other loan? Do you have siblings or aging parents who depend on you for financial support?

The truth about this life insurance misconception is that just because you’re not supporting a family doesn’t mean that the people in your life wouldn’t benefit greatly from your life insurance policy.

At the very least, everyone has final expenses (such as funeral, burial, and even medical bills) that someone close to you may have to pay. In fact, purchasing a life insurance policy when you’re young allows you to lock into some very low premiums. So if later in life you do get married and have children, or your health status changes, your premiums will remain level for as long as the policy is active. There are many ways a single person can benefit from a life insurance policy.

Life insurance costs too much.

Did you know 86% of consumers who know they need life insurance haven’t purchased a policy because they think it’s too expensive? The reality is that people tend to overestimate the cost of life insurance.

For example, a 45-year-old male could get $250,000 of coverage for less than two movie tickets!

* Based on a 10-year policy at the preferred plus, non-tobacco rate.

My pre-existing health issues will automatically make me ineligible.

It used to be that having a previous or current health condition meant that life insurance premiums would either be unaffordable, or worse, you’d be denied coverage altogether. This is one of the biggest life insurance misconceptions.

Fortunately, because of today’s medical advances, there is earlier detection and treatment for everything from cancer to diabetes. According to Marvin Feldman, CEO and president of the Life and Health Insurance Foundation for Education, “The insurance landscape has shifted dramatically. It’s now a lot easier for people with pre-existing conditions to get life insurance policies.”

*Underwriting guidelines will vary greatly between insurance carriers.

Life insurance is life insurance, no matter who I buy it from.

If you’re shopping around for quotes, it can be very tempting to buy life insurance from the company that offers you coverage at the cheapest price. This is one of the life insurance misconceptions that can really end up costing you in the end.

Remember, your life insurance policy is an agreement from the insurance company that when you die, your beneficiaries will be left with the financial security they need.

Choose Wisely


Asurea offers Life Insurance, Mortgage Protection Life Insurance, Medicare Supplement Insurance, Final Expense Insurance, Disability Insurance, Long-term Care Insurance, Retirement Planning products and more. For additional information, click on the ‘Learn more’ button below. Want to have articles just like this delivered to your inbox? Just enter your email address in the box below and click ‘Subscribe.’

This information is provided for general consumer educational purposes only and is not intended to provide legal, tax or investment advice. Dollar amounts are for illustrative purposes, not actual.

Leslie Freeland

Leslie Freeland

Find her at LinkedIn
Leslie joined Asurea as the Marketing Communications Coordinator in February 2015. Since then, she has been working closely with insurance professionals to educate the public on the importance of life insurance and protect the public from common scams with informational articles.
Leslie Freeland