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Do You Have Life Insurance?
If not, what’s holding you back? If it’s been a while since you considered getting life insurance—or if you’ve been told you don’t need it—then check out these myths and see if they might be what’s holding you back.
Myth #1: You Don’t Really Need It.
Life insurance is too often discussed as only a “necessity” product, says Michele Lee Fine, the president of Cornerstone Wealth Advisory and a financial representative with Guardian. People may only decide to purchase life insurance if, for instance, they bought a house, made a big investment, or had a child. Fine believes this is the wrong way to think about things.
In her practice, Fine says she’s heard people say things like, “I need life insurance because I have children,” or “I don’t need life insurance because my children are grown up and have jobs now.” But life insurance should be considered in terms of its long-term purpose and value. Yes, your needs in life will change frequently, but the cash value of your life insurance policy will keep growing regardless of that change—as long as you choose a policy with cash value. (Which you should do!)
If you have the discipline to keep saving, Fine says your policy could turn into one of your best assets later in life, thanks to compounding interest. Also, life insurance policies with a cash value can also be used to offset the cost of long-term care—that cash will be there when you need it if the time comes to move into an assisted living facility, or in the event of an accident or other event where high medical costs are incurred.
Myth #2: Stay-at-Home Moms Shouldn’t Have It.
“People underestimate what it costs to run their lives,” Fine says. This is certainly true of stay-at-home moms, many of whom may incorrectly believe that life insurance is an unreasonable investment. After all, life insurance is supposed to replace the lost income from your job—but just because women who are keeping the house, caring for children and preparing three meals a day aren’t earning a paycheck doesn’t mean they’re jobless. “Many people fail to understand how expensive it would be to replace that,” says Susan Sachatello, Vice President of TruStage at CUNA Mutual Group.
Myth #3: You Can’t Afford It or Qualify for It.
Some life insurance packages can indeed cost a lot of money, but Sachatello says that her customers estimate the cost of a policy to be 250% more than it actually is. What many people don’t understand is that the market is vast and eclectic with countless options that may be right for you, depending on your age, income, budget and other factors. Sachatello believes that some coverage is better than no coverage.
“We have a ‘just get started’ mentality,” she says, adding that anyone can find an affordable life insurance policy based off their budget. For people under 44, for example, the leading cause of death is accidents.
Purchasing an accidental death and dismemberment (AD&D) policy can cost as little as $7–$10 a month for basic coverage, while the average 20-year term life insurance policy for a healthy adult runs around $30 per month in 2026.
Sachatello stresses that even if you can’t afford life insurance that would pay off your mortgage and send your children to college, purchasing a policy that will cover your family even for a few years is still beneficial—it can give everyone time to catch their breath and devise a plan.
