5 Myths About Life Insurance

Nov 30, 2016

Everyone’s heard of life insurance, but this important form of financial protection is widely misunderstood. To improve your knowledge of life insurance’s costs, benefits, and availability, examine the following widespread myths about life insurance.


1. You shouldn’t have life insurance unless you’re employed.

An understandably common myth about life insurance is that it’s not worth having unless you’re employed with a steady income. In reality, nearly every adult should have life insurance. Stay-at-home parents, a large number of which do not have life insurance because they’ve heard and believed this myth, are especially viable candidates for life insurance. As a stay-at-home parent, you provide tremendous value to your family. Many of the financial benefits your family reaps as a result of your work can even be measured in terms of monetary value. Should you die prematurely, life insurance can fill the financial void that will be arise after you’re gone.


2. Single adults without children don’t need life insurance.

Another common life insurance myth is that adults without children don’t need life insurance. If you intend to marry or have parents who are or will soon be financially dependent on you, this myth could hardly be more misleading. Even if you are single, a life insurance death benefit can be used to cover your funeral expenses should you die prematurely.


3. Health issues and old age preclude you from qualifying for life insurance.

The logic behind this is that insurance companies want to insure young, healthy individuals whose likelihood of dying in the years following acquisition of an insurance policy is slim. While the logic may have some merit, it is untrue that the sick and elderly can’t qualify for life insurance. You’ll likely have higher premiums than a young and healthy individual, but you should be able to find a policy you qualify for unless you are terminally ill. Even if you do have trouble finding a life insurance plan that makes financial sense to have, you can consider final expense insurance, which covers burial or cremation and funeral expenses.


4. Group life insurance is enough.

Group life insurance can seem as an attractive employer benefit, and sometimes it is. In general, however, the death benefits on these policies are relatively low. Consumers have little autonomy or flexibility when signing onto a group life insurance policy. If you do opt on to your employer’s group life insurance plan, you may want to supplement it with private life insurance.


5. Life insurance is expensive.

Life insurance can be expensive, but it rarely costs as much as people assume it will before they buy it. A healthy 30-year-old can purchase a 20-year term life insurance plan for less than $20 month. A 50-year-old should expect to pay more for the same coverage, but should still be able to secure it for as little as $75 per month.


Had you heard any of these myths before? What about other information about life insurance that has deterred you from buying it? To further distinguish between fact and fiction and get answers to pressing questions you may have about life insurance, contact Brokers Alliance. Call (800) 290-7226 to speak with an industry expert or get a free a life insurance quote today.


Category: Life Insurance

Category List

Tag List

Quoting Tools (1)
Tips (4)
earning opportunities (1)
advanced markets (1)
MAC App Feature (1)
LifeBrain (1)
Financial Legacy (6)
2019 (1)
Immediate Fixed Annuities (1)
Breast Cancer Research (1)
Marketing (14)
Annuities (36)
Prospecting (6)
guarantee (1)
Healthy Living (1)
Fixed Indexed Annuities (2)
Required Minimum Distribution (1)
Gender Gap (1)
industry trends (1)
business (1)
march madness (1)
illness (1)
BlackRock (1)
Retirement Investment (3)
MAC (4)
Life Insurance Update Show (9)
savings (1)
Life Insurance Awareness Month (6)
Advice (1)
Life Insurance Trends (21)
Social Media (8)
Donation (1)
products (5)
Hybrid Products (1)
life insurance awareness (1)
Income Planning Academy (1)
tools (2)
social security (2)
Death Benefit (2)
Featured MAC App (2)
Variable Annuities (1)
Brokers (2)
networking (1)
Indexed Annuity (3)
Financial Planning (20)
rates (1)
trends (1)
business planning (6)
Income (1)
life insurance quotes (1)
Sales (25)
Waste Management Open (1)
living benefits (8)
key person (1)
Annuity Concepts (13)
training (9)
Looking Forward, Giving Back (1)
resources (2)
Health Care (2)
Tax Benefits (2)
RMD (1)
IRA (1)
Baby Boomers (1)
estate planning (2)
Life Insurance (95)
Protection (1)
funeral (1)
Additional Earning (1)
online resources (1)
analysis (1)
Long Term Care (5)
business solutions (4)
FIA (1)
Fixed Annuities (9)
gul (3)
Retirement Strategy (4)
Interest Rates (1)
Production (1)
Illustrations (1)
Brokers Alliance (8)
Breast Cancer Awareness Month (5)
Inflation (1)
Social Optimization (3)
injury (1)
Product Updates (1)
Universal Life Insurance (3)
Legacy (1)
life happens (1)
Index Universal Life (1)
Clients (2)
MYGA (10)
digital tools (1)
Life Quotes (4)
Generation Y (1)
Economy (1)
Charitable Giving (3)
Alternative Investments (2)
Best Rates (1)
Market (1)
non-med (3)
Life Insurance Broker (15)
term (6)
E-App (1)
Retirement (13)
Millennials (6)
Life Insurance Brokers (6)
Training Event (1)
Investments (2)
Executive Bonus Arrangement (1)
premium deposit account (1)
review (2)
Premium Finance (5)
Charity (2)
quoting (1)
Insurance (21)
underwriting (1)
advanced planning (2)
Financial (4)
Legacy Planning (1)
Video On-Demand (2)
Gift (1)
Facebook (2)
presentations (3)
Long-Term Care Awareness Month (1)
buy sell agreement (1)
PPC (2)
Quotes (1)
Life Insurance Check Up (7)
hiring (6)
DOL (2)
sales kit (2)
life concepts (1)
selling (1)
Compliance (1)
term life (10)
PIA (2)
myAdvisorCloud (4)
Asset-Based LTC (1)
Sales Concepts (17)
end of year (1)
virtual sales (3)
Roth (1)
permanent life insurance (4)
Benefits (1)
Deferred Fixed Annuities (1)
Mobile App (1)
consumer marketing (8)
IUL (13)
Life Insurance Evaluation (8)
Star Wars (1)
Annuity Update Show (11)
Alternatives (5)
Market Exposure (1)
Pitch (1)
business owners (4)
private pension funding (1)
sales presentations (2)
Retirement Planning (24)
Beneficiary (1)
Webinar (4)
final expense (1)
Retirement ACE (1)
agent resources (1)
Media (2)
case studies (3)
leads (6)
CSO (1)
Cash Value (1)
PBR (1)
Annuity (3)
life 101 (2)
Leaderboard (1)
Content Building (2)
Brokers Alliance Open (1)
Brand Values (1)

Tag Cloud

Social OptimizationLong-Term Care Awareness MonthIncome Planning AcademyExecutive Bonus ArrangementLife QuotesAdvicelife insurance awarenessDOLcase studiesLooking Forward, Giving BackRetirementgulonline resourcesLife Insurance Trendsend of yearIndexed Annuitymarch madnesspresentationsCharityillnessMarket ExposureBrokers Alliance OpenDeath BenefitBrokers AlliancetrainingLegacysales kitComplianceBreast Cancer ResearchSaleslife 101EconomyIllustrationsInvestmentsFinancialanalysispermanent life insurancesellingBreast Cancer Awareness MonthBrand ValuesProtectionproductsTipsGiftBest RatesfuneralWebinartoolsLeaderboardestate planningbusinesslife insurance quotesindustry trendsadvanced planningprivate pension fundingreviewProduct UpdatesBrokersIULtermRetirement InvestmentMACsocial securityClientsRothadvanced marketsMarketAdditional EarningInsurancefinal expenseMediaInterest RatesAnnuitykey personRetirement ACEpremium deposit accountQuotes2019PitchmyAdvisorCloudPPCPIACash ValueGeneration YAlternativesMYGAvirtual salesinjuryLong Term CareWaste Management OpenleadsFixed Indexed AnnuitiesPremium Financedigital toolsUniversal Life InsuranceBaby BoomersMillennialsMAC App FeaturenetworkingIndex Universal LifeLife Insurance EvaluationLegacy PlanningFinancial PlanningSocial MediaRequired Minimum DistributionIRAbusiness solutionsHealth CareMobile Appbuy sell agreementE-AppFinancial LegacyguaranteeDonationFIAPBRIncomeLife Insurance Update Showagent resourcesVideo On-DemandSales ConceptsBeneficiarysavingslife conceptsFacebookProspectingAnnuity ConceptsCSOVariable Annuitiesbusiness planningTax BenefitsLife InsuranceImmediate Fixed AnnuitiesMarketingTraining EventAnnuity Update ShowLife Insurance Brokerlife happensBenefitsGender GapRetirement StrategyInflationBlackRockCharitable GivingProductionContent BuildingAlternative InvestmentsLife Insurance Brokersterm lifeAsset-Based LTCbusiness ownersunderwritingLifeBrainStar WarsRetirement PlanningHealthy LivingLife Insurance Check UpHybrid ProductsLife Insurance Awareness MonthratesDeferred Fixed AnnuitiesFeatured MAC Apphiringliving benefitsAnnuitiestrendsnon-medresourcesQuoting Toolssales presentationsFixed AnnuitiesRMDquotingconsumer marketingearning opportunities