Life insurance isn’t always an easy topic to think about. But there is peace of mind in being prepared, especially when the unexpected happens. As February is American Heart Month, it’s an important reminder to consider finding out more about life insurance and the financial protection it can offer.
Life insurance asks us to consider difficult scenarios and plan for events we don’t want to think about. Because of that, many people may put it off or make decisions based on assumptions that may not meet what they might need.
The good news? Life insurance is likely less complicated, potentially more affordable, and may provide more options than many people realize. Understanding a few common misconceptions can make it easier to decide when coverage makes sense for you and how it can fit into your budget.
Below, we break down five of the most common life insurance myths and the truth behind them:
Myth #1: Life insurance is too expensive
Many people may overestimate how much life insurance costs – sometimes by several times the actual price. Life insurance can actually be affordable, especially when signing up at a younger age. For many families, coverage may cost less per month than everyday expenses like streaming services or dining out.
Premiums, or regular life insurance payments, can vary based on:
- Age and health
- Coverage amount
- Policy type (term vs. whole life insurance)
The only way to know the actual cost is to explore your options with your HR team at work, benefits contact at your union, or your financial advisor. You may find that adding life insurance protection is far more accessible than you expected.
Myth #2: I’m young and healthy – I don’t need life insurance yet
It’s easy to assume that life insurance is something to think about later in life. But a good time to consider coverage is when you’re younger.
Age and health status can play a role in determining eligibility and cost. Applying earlier may mean lower rates and more options. Some life insurance, like whole life insurance, can have guaranteed rates that won’t go up as you get older.
Even without having the financial responsibilities that come with raising kids, life insurance will still provide a financial safety net in case anything happens and you have certain expenses that need to be covered. It can also provide life insurance coverage for a spouse or partner to cover shared debts. And if you reach milestones like marriage, homeownership, or parenthood, your coverage can be adjusted to reflect new responsibilities.
Myth #3: Life insurance is only available through a financial advisor
While financial professionals can help you find and get life insurance, there can be other options during the process.
Many people have access to life insurance options through their workplace, union, or a spouse’s workplace. Employers often make coverage available in ways that are convenient and cost-effective, such as automatically deducting insurance payments from your paycheck – a convenient set-it-and-forget-it option.
For example, Boston Mutual Life offers a range of workplace insurance solutions that are paid for by employers, employees, or both. These can include whole life, term life, and other insurance options such as critical illness, accident, and disability coverage. Having access through the workplace can make it easier to get started, ask questions, and build protection for the entire family.
Myth #4: Workplace life insurance can’t offer enough options for my needs
Workplace coverage is sometimes thought of as limited, but that isn’t always the case.
Insurance offerings through work can be designed to meet a variety of needs. These may include options such as:
- Portable coverage (you can take it with you if you change jobs)
- Fixed-rate policies that don’t increase with age
- Optional add-ons called riders for extra protection
- Bundled benefits (accident, disability, critical illness)
Workplace coverage can be more than just a small, one-size-fits-all benefit. It can be an adaptable foundation that grows and changes with you.
Myth #5: My life insurance policy only covers me, not my family
Many assume a life insurance policy protects only the person named on it. However, some policies can extend protection to your loved ones.
Depending on the type of coverage you choose, it may be possible to add a spouse, dependent children, and even grandchildren under one affordable plan. That kind of shared coverage can help families create a broader safety net without having to manage multiple separate policies.
Family-focused coverage can help with a wide range of needs, from everyday living expenses to childcare, education costs, debts, and final expenses.
Building a future for your loved ones
Life insurance is about caring for the people who matter most. By separating myths from facts, you can make more confident, informed decisions about when coverage makes sense and how it fits into your life.
Whether you’re early in your career, raising a family, or planning for retirement, understanding your options today can help protect what you’re building for tomorrow.
Interested in learning more? Click here to connect with a representative and explore your life insurance options.