Life Insurance Myths and Facts

Don’t Let Misconceptions Put Your Family’s Future at Risk

Life insurance is one of the most important financial decisions you’ll ever make. Yet, many people delay or avoid getting coverage due to common myths and misunderstandings. At Toby Hansen Agency, we’re here to separate fact from fiction and help you make informed choices to protect your loved ones.

Myth 1: “Life insurance is too expensive.”

Fact: Most people overestimate the cost of life insurance by nearly three times. In reality, a healthy 30-year-old can secure a $250,000 term life policy for as little as $15–$20 per month. ​

Myth 2: “I don’t need life insurance until I’m older or have children.”

Fact: Life insurance is most affordable when you’re young and healthy. Waiting can lead to higher premiums or potential disqualification due to health changes. ​

Myth 3: “I have life insurance through my employer, so I’m covered.”

Fact: Employer-provided life insurance often offers limited coverage and may not be portable if you change jobs. 

Myth 4: “Stay-at-home parents don’t need life insurance.”

Fact: The services provided by stay-at-home parents have significant economic value. Life insurance can help cover the cost of childcare and household responsibilities if something happens to them. ​

Myth 5: “I’m too old or have health issues, so I can’t get life insurance.”

Fact: There are policies designed for older individuals or those with health conditions, such as guaranteed acceptance life insurance. ​

Myth 6: “Life insurance payouts are taxable.”

Fact: In most cases, life insurance death benefits are not subject to federal income tax. ​

Myth 7: “I only need life insurance if I have dependents.”

Fact: Life insurance can also cover debts, final expenses, or leave a legacy to a favorite charity, even if you don’t have dependents. ​

Myth 8: “Applying for life insurance is a hassle.”

Fact: The application process has become more streamlined, with many insurers offering online applications and simplified underwriting. 

Myth 9: “I can’t afford life insurance.”

Fact: With various policy options available, there’s likely a plan that fits your budget and needs. ​

Myth 10: “I don’t need life insurance because I have savings.”

Fact: While savings are important, life insurance provides a dedicated financial safety net that can protect your family without depleting your assets.

Ready to Separate Fact from Fiction?

At Toby Hansen Agency, we’re committed to helping you understand your options and find the best life insurance policy for your unique situation. Don’t let myths prevent you from securing your family’s future.

Get a free, no-obligation quote today.