10 Life Insurance Myths That Could Be Costing You (And the Truth You Need to Know)
When it comes to life insurance, misinformation is everywhere — and that confusion could be costing you or your family real money and peace of mind.
At THRYVE Insurance, we talk to people every day who think they don’t need life insurance, can’t afford it, or already have “enough.” The truth? Many of those beliefs are based on outdated myths, not facts.
Whether you're buying your first policy or rethinking what coverage you already have, understanding the truth behind these 10 life insurance myths could save you thousands and help you make smarter financial choices.
Want to skip ahead?
📥 Download our FREE “10 Life Insurance Myths — Debunked” Cheat Sheet
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Myth #1: “Life Insurance Is Too Expensive”
Reality: Most people dramatically overestimate the cost.
According to LIMRA, over 75% of consumers believe life insurance costs at least three times more than it actually does. In reality, a healthy 30-year-old can often get $250,000 in term life insurance for under $20/month.
👉 Pro tip: The younger and healthier you are, the cheaper your rates will be — so waiting only makes it more expensive.
Myth #2: “I’m Young and Healthy — I Don’t Need Life Insurance”
Reality: That’s exactly why now is the time to get covered.
Life insurance isn’t just for older adults — in fact, it’s best bought when you’re young and healthy. Why?
✅ You’ll lock in lower rates
✅ You protect your insurability in case your health changes
✅ You can start building cash value earlier with a whole life policy
Myth #3: “I’m Covered Through Work — I Don’t Need More”
Reality: Employer coverage is usually limited and not portable.
Group life insurance through work is a nice perk, but it often only covers 1–2 times your salary — which may not be enough to protect your family. Plus, if you change jobs or get laid off, you could lose that coverage entirely.
👉 Smart move: Get your own individual policy that stays with you no matter where you work.
📥 Download our FREE “10 Life Insurance Myths — Debunked” Cheat Sheet
Myth #4: “I Don’t Have Kids, So I Don’t Need Life Insurance”
Reality: Life insurance isn’t just for parents.
Single adults can still benefit from coverage that protects loved ones from funeral costs, medical debt, or co-signed loans. It also helps you qualify for lower rates now in case you want to start a family later.
Myth #5: “My Spouse Doesn’t Work, So They Don’t Need Coverage”
Reality: Stay-at-home spouses provide huge economic value.
If a stay-at-home parent passes away, the cost of replacing what they do — childcare, transportation, cooking, managing the home — can be thousands of dollars per month. Life insurance helps cover those real expenses and maintain your family’s lifestyle.
Myth #6: “Term Life Insurance Is Always the Best Option”
Reality: Term life is great for temporary coverage, but it ends.
Whole life insurance not only lasts your entire life — it builds guaranteed cash value you can use for emergencies, retirement, or to fund investments using strategies like Infinite Banking.
If you're looking for lifelong coverage and long-term financial growth, whole life is worth a serious look.
📞 Book a free call to see which policy type fits your goals »
Myth #7: “Life Insurance Benefits Are Taxable”
Reality: Life insurance payouts are generally tax-free.
Your beneficiaries typically receive the death benefit income tax-free. And if you have a cash value policy, your money grows tax-deferred and loans from your policy are tax-free when properly structured.
📥 Download our FREE “10 Life Insurance Myths — Debunked” Cheat Sheet
Myth #8: “I’ll Just Invest the Difference”
Reality: Most people don’t actually invest the difference — and miss out on the benefits.
While "buy term and invest the rest" sounds good in theory, the average person doesn't follow through. Whole life insurance forces disciplined saving, provides tax-deferred growth, and guarantees protection — even if the market crashes.
Myth #9: “I Can’t Get Life Insurance Because of My Health”
Reality: Many insurers offer coverage for people with health conditions.
Even if you have diabetes, high blood pressure, or other conditions, you may still qualify. Some companies specialize in “impaired risk” policies and can help you find coverage that works for your budget.
📞 Book a no-pressure call to explore your options
Myth #10: “I’m Wealthy — I Don’t Need Life Insurance”
Reality: Wealthy families use life insurance to preserve and transfer wealth.
From estate tax planning to business succession to creating multi-generational wealth, life insurance can play a powerful role in a high-net-worth strategy. It offers liquidity when your estate is tied up in real assets, and creates tax-efficient cash exactly when your heirs need it most.
Still Unsure If You Need Life Insurance?
Here’s a quick test:
Would your family struggle to pay bills if your income disappeared?
Do you want to leave a legacy for your kids or spouse?
Would you rather have guaranteed coverage that grows tax-free?
If you answered yes to any of these, life insurance isn’t just a good idea — it’s a necessity.
Ready to Take Action?
📥 Download our FREE Life Insurance Myths Cheat Sheet
Get all 10 myths and truths in a clear, no-fluff format you can save or share.
📞 Book Your Free Call with a Licensed THRYVE Advisor
We’ll walk you through your options, answer your questions, and help you find the right coverage — with zero pressure.
Don’t let outdated beliefs keep you from protecting what matters most.
Knowledge is power — and today, you’ve got both. 💡
