National Life Insurance Awareness Month 2024

Life insurance is often misunderstood. Many think it's expensive, not suitable for young persons or unnecessary when healthy. In truth, it is affordable and able to provide essential financial security for loved ones at any life stage. Let's clear up some of the misconceptions and focus on the facts.

1. Life Insurance is Too Expensive

❌Misconception: Many Canadians believe that life insurance is unaffordable.

✅Fact: Term life insurance can be quite affordable, especially if you purchase it while you’re young and healthy. For example, a 30-year-old non-smoking female can pay as little as $20 monthly for a $500,000 20-year term policy.

2. You Don’t Need Life Insurance if You’re Young, Single, and Healthy

❌Misconception: Young, single, and healthy individuals often think they don’t need life insurance.

✅Fact: Locking in a policy while you’re young and healthy can be cost-effective and beneficial for future family planning. Additionally, life insurance can cover final expenses and debts.

3. Employer-Provided Life Insurance is Sufficient

❌Misconception: Many people rely solely on their employer-provided life insurance.

✅Fact: Employer-provided life insurance is often limited and may not be enough to cover all your needs. Moreover, you lose this coverage if you change jobs.

4. You Can’t Get Life Insurance with a Pre-existing Condition

❌Misconception: People with pre-existing conditions believe they can’t get life insurance.

✅Fact: While some conditions may affect premiums, many people with pre-existing conditions can still obtain life insurance. Policies may come with specific conditions or higher premiums, but approval is common.

5. Joint Life Insurance is Always the Best Option for Couples

❌Misconception: Couples often think joint life insurance is the best choice.

✅Fact: While joint policies can be beneficial, they may not always be the best option. Individual policies can offer more flexibility and better coverage tailored to each person’s needs.

6. You Should Always Buy Term and Invest the Difference

❌Misconception: It’s commonly advised to buy term life insurance and invest the difference.

✅Fact: This strategy may not suit everyone. Permanent life insurance policies offer lifelong coverage and can build cash value, which might be more beneficial for some individuals.

7. Life Insurance is Only Used for After-Death

❌Misconception: Life insurance is only useful after death.

✅Fact: Life insurance can also be used for living benefits, such as borrowing against the policy’s cash value or using it for retirement planning.

Contact us for more information on how to get a life insurance policy that is tailored to meet the needs of you and your family!

Photo credits: LIMRA and Life Happens