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Life insurance myths busted: What to know now

Insurance policy on a desk.
Consumers often misunderstand life insurance, which can prevent them from buying the policies they need most. Getty Images/iStockphoto

Life insurance is one of the most important products you can buy, offering financial protection to those you love in a worst-case scenario. This coverage, which can last for a specific number of years or the rest of your life, provides a payment to your beneficiaries if you pass away while the policy is in effect.

However, sifting through the different life insurance options can feel overwhelming, and you may find it difficult to decide which products, terms, premiums, and coverage amounts would best combine to protect your loved ones. 

If you're unsure about how to proceed, Haven Life can lend a hand. You can easily get started today.

Amid this confusion, it's important to separate fact from fiction. Here are some of the most common life insurance misconceptions you might encounter, and what you actually need to know.

1. You need to be in great health to get a policy

While it's true that you'll usually lock in lower premiums on life insurance coverage the younger and healthier you are, this doesn't mean you can't buy a policy if you aren't in great health. 

Life insurance coverage is available to anyone who wants it, though your specific situation may lead you to buy one type of policy over another. For example, if you have diabetes or heart disease, there are some carriers you might not be able to purchase from, while others will just want to see evidence that your condition is well-controlled. 

Depending on the type of coverage you want to buy, you may be asked to participate in a paramedical exam as part of your life insurance application process. The results of this exam can determine your eligibility for coverage as well as influence your cost.

Some carriers may raise your premiums — but still allow you to purchase a policy — if you are overweight, have high blood pressure, or are in remission from cancer. If you are currently battling cancer or another serious medical condition, you could be limited to purchasing a guaranteed issue policy.

You may find it easier to qualify for affordable coverage from a group policy through your workplace. It's just important to note that in many cases, this coverage ends if you leave your job.

You can easily find a policy that works for you and your loved ones right now

2. Life insurance is expensive

It's true that life insurance coverage is an added expense in your monthly budget. However, premiums for a life insurance policy are probably a lot more affordable than you think.

According to a recent study from LIMRA and, more than 80% of consumers overestimate the cost of buying life insurance coverage. With policies available for just a few dollars a month, you may be surprised to learn just how easy it can be to financially protect your loved ones.

The cost of your life insurance policy will be determined by the policy you choose, how much coverage you want, the type of policy you buy, and how long you want your coverage to last. Your personal factors — such as your age, gender, location, family history, health, and lifestyle — can also play a role in determining price. 

Thankfully, it's now easier than ever to shop around online and get a quick quote for coverage!

3. Young people don't need life insurance

Let's be honest: no one wants to consider their own mortality, and it's certainly uncomfortable to plan for it. The younger you are, the less apt you might be to think about death… but in many cases, that's exactly when you should consider buying life insurance coverage.

Life insurance benefits can help provide financial support to your spouse, children, or other loved ones if your income were to suddenly be lost. 

Even if you don't yet have a family, though, life insurance coverage can still protect your parents, siblings, or even just your estate. This coverage can be used to:

  • Pay for final expenses such as medical bills and your funeral
  • Satisfy debt that would otherwise pass to your estate, such as an outstanding mortgage balance or co-signed loans
  • Leave a legacy in your honor, funding charitable causes that are meaningful to you or establishing a scholarship at your alma mater
  • Create generational wealth

Not to mention, life insurance premiums are more affordable the younger you are. By buying at an earlier age, you can lock in lower rates for decades to come, depending on whether you buy whole or term coverage.

4. Buying life insurance is stressful 

Once upon a time, purchasing life insurance was indeed a long and arduous process. Getting coverage could take weeks if not months, and often involved a lot of paperwork and complex medical exams. 

These days, buying life insurance is easier and faster than ever. Depending on the coverage you want and your personal history, you can sometimes shop for coverage and purchase a policy online, often without the need of a medical exam. From start to finish, the process of purchasing a policy can now take a matter of days… or in some cases, just a few hours.

With Haven Life, you can take advantage of an easy application process. Click here to get started or use the table below to shop for providers.

5. Life insurance only takes care of those you leave behind when you die

Yes, the primary purpose of life insurance coverage is to financially protect those you love after you're gone. But what you might not know is that many policies offer benefits to you, too!

The living benefits afforded by a life insurance policy will vary based on the type of policy and which options you chose at the time of purchase. Some benefits you could enjoy include:

Be sure to speak with your financial adviser to see which life insurance benefits make the most sense for you, your budget, and your future goals.

When it comes to financially protecting your loved ones, life insurance is an infinitely valuable product to have — even though we all hope to never actually need our coverage. Buying a policy can feel like a daunting task, though, whether you're uncomfortable facing your own mortality or simply feel that it will be too expensive or stressful of a process.

Thankfully, these life insurance myths are now busted. Buying coverage is easier, faster, and more affordable than ever before, putting life insurance within reach for consumers of all budgets and backgrounds.

Take the first step today and discover all the benefits of life insurance.

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