Don’t Fall for These Life Insurance Myths!

Life insurance is for rich people

FALSE! Everyone needs life insurance. Let the insurance company cover the risks, for a small premium. Rich people can actually afford to self-insure, they don’t NEED life insurance. However, even the rich get insurance because they prefer that insurance companies pay for the risks, so they can hold on to their own money.


Life insurance is expensive

If you think $7* per month is expensive, then you’re right.

In a recent survey, 100% of participants thought life insurance is at least twice as expensive as it really is. In reality, since we now live longer the term life insurance rates have dropped significantly in the past 30 years.

* A person age 35 can buy $100,000 term life insurance policy for 10 years, for only $7/month premium, if she’s healthy and not using tobacco. Everyone should at least have enough insurance to cover their mortgage in case something happens.


You have to DIE to get paid

NOT TRUE. Most life insurance policies now include an additional benefit, at no additional cost: ACCELERATED BENEFITS rider, which will pay you a % of the benefit in case you get diagnosed with a terminal illness or have to live in a nursing home facility. Even better, some life policies now have additional riders (some for an extra premium) that will pay benefits if you can’t work due to an accident or illness, even if it’s not a terminal situation.


Life Insurance is hard to get

INCORRECT! Depending on how much life insurance you need, you may not need to have a medical exam done or even show insurability! No blood tests, no urine testing for policies up to $350,000 or $400,000 – depending on which insurance companies you ask.


Term Life is a waste of money

FALSE! Term life is actually a very cheap way to get temporary protection during the vulnerable period of your life when you need it most: when you have a mortgage, having a lower income while you’re younger, have children that are going to school or college. Everyone needs protection, so term is for those who can’t afford a permanent life insurance policy.


If you have heard of other myths you’d like to discuss, please let us know. For any questions, ask the LifeGuy: (239) 466-4466 or email

Author: LifeGuy

Daniel LifeGuy Dragan has 126 posts in this blog.

Daniel is a dedicated insurance expert with a focus on helping individuals, families and small businesses avoid financial disasters with Life Insurance products, Paycheck Protection (Disability Insurance), Retirement planning, Cancer and Critical Illness Insurance, executive and business protection plans. With his comprehensive knowledge and experience in financial protection, Daniel can help save money as well as get all your insurance premiums returned to you if you didn't use any of the benefits. "Return of Premium" insurance is one of Daniel's strengths and along with his personal approach to his customers' needs, one of the main reasons his clients are referring him to friends, family and business partners. Daniel offers free financial consultations and can be reached by email at or phone: (239) LIFE-GUY or 239-466-4466


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