Busting the Most Common Myths About Life Insurance

Life insurance is one of those financial tools that many people hear about but don’t always fully understand. As a result, a lot of myths and misconceptions get passed around — and those misunderstandings can prevent people from making smart decisions about their financial security.

Let’s clear up some of the most common myths about life insurance.

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Myth #1: “I’m young and healthy — I don’t need life insurance.”

The truth: Being young and healthy actually makes life insurance more affordable. Locking in coverage while you’re at your healthiest can mean lower premiums and peace of mind for years to come. Waiting until later can make it more expensive, or even harder to qualify.

Myth #2: “Life insurance is too expensive.”

The truth: Many people overestimate the cost. In fact, a basic term policy can often cost less per month than your streaming subscriptions or daily coffee run. Plus, policies can be tailored to your budget and needs.

Myth #3: “I don’t have dependents, so I don’t need coverage.”

The truth: Even if you don’t have children or a spouse, life insurance can still provide value. It can help cover debts, funeral costs, or leave a legacy for loved ones or a favorite charity.

Myth #4: “My employer-provided policy is enough.”

The truth: While workplace coverage is a great benefit, it’s usually limited and tied to your job. If you change employers, that coverage may not follow you. Having your own policy ensures you’re protected no matter where your career takes you.

Myth #5: “Life insurance is just a death benefit.”

The truth: Some policies offer living benefits, such as building cash value that you can borrow against, or riders that provide support if you face a serious illness. Life insurance can be a flexible part of a broader financial plan.

Myth #6: “It’s too complicated.”

The truth: While there are different types of policies, the basics are straightforward once explained. With the right guidance, you can cut through the

jargon and choose coverage that fits your situation.

Final Thoughts

Life insurance isn’t about fear — it’s about preparation. By understanding what’s fact and what’s fiction, you can make a decision that protects the people and priorities you care about most.

If you’ve been putting off exploring your options because of these myths, now might be the right time to take a closer look.

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Registered Representative of, Securities and investment advisory services offered through Hornor, Townsend & Kent, LLC. Registered Investment Adviser. Member FINRA/SIPC. 800-873-7637, www.htk.com. HTK does not offer tax or legal advice. Caserta & de Jongh, LLC is unaffiliated with HTK.

For Educational Purposes Only – Not to be relied upon as financial, tax, or legal advice. The information herein has been derived from sources believed to be accurate.

The cost and availability of life insurance depend on factors such as age, health, and the type and amount of insurance purchased. Before implementing a strategy involving life insurance, it would be prudent to make sure you are insurable. As with most financial decisions, there are expenses associated with the purchase of life insurance. Policies commonly have mortality and expense charges; if a policy is surrendered prematurely, there may be surrender charges and income tax implications. You should consult a qualified tax professional for tax advice on your own personal situation. All guarantees are based upon the claims-paying ability of the issuer.

Life insurance permanent policies contain exclusions, limitations, reductions of benefits and terms for keeping them in force.  Accessing cash values may result in surrender fees and charges, may require additional premium payments to maintain coverage, and will reduce the death benefit and policy values. Loans are income tax free as long as policy is not a “modified endowment contract” (MEC) and policy must not be surrendered, lapsed, or otherwise terminated during the lifetime of the insured, and withdrawals must

not exceed cost basis. Partial withdrawals during the first 15 policy years are subject to additional rules and may be taxable. Excess policy loans can result in termination of a policy.  A policy that lapses or is surrendered can potentially result in tax consequences. You should consult a qualified tax professional for tax advice on your own personal situation.  All guarantees are based upon the claims-paying ability of the issuer.

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