Financial Wellness: 7 Life Insurance Myths Debunked: Understanding Its True Value for Every Age

When it comes to life insurance, misconceptions abound. And that’s unfortunate because it’s one of the most powerful, accessible financial planning tools we have.

From helping you achieve your goals and dreams to protecting your loved ones, life insurance offers real solutions at every age and stage of life.

Don’t let fallacies prevent you from leveraging this trustworthy tool. Take a moment to examine these seven key life insurance myths—and learn the truths and facts.

Myth 1: “I’m Too Young to Need Life Insurance”

Fact: Youth is not a shield against mortality. Accidents and illnesses strike people of every age. Globally, about one in 12 people dies before the age of 40 (although this varies, depending where you live). So, yes: young people need life insurance.

In addition, purchasing a policy while you’re young and healthy means you’ll pay far less in premiums. With whole life insurance, your premium never increases, so you’ll save even more over time—while accumulating cash value and locking your protection in place.

In other words: the best time to buy life insurance is when you’re young!

Myth 2: “I’m Too Old to Qualify for Life Insurance”

Fact: Age is not an automatic barrier to obtaining life insurance; many insurers have solutions designed for older individuals. Even if you have health issues, chances are, there are tailored coverages available to you.

How do you find them? A reputable insurance advisor can guide you. The sooner you start the process, the better—because you’ll never be younger than you are today.

Myth 3: “Life Insurance Is Too Expensive”

Fact: You won’t know what life insurance will cost you until you request a quotation. And considering that half of people overestimated its cost by more than 300%, you can’t trust your assumptions.

Insurers understand that most people are on budgets, which is why they offer options and strategies that keep premiums that work within people’s budget. For example, many younger people start with a modest benefit, then increase it as their earning power grows.

Myth 4: “Only Family Breadwinners Need Life Insurance”

Fact: Breadwinners do need life insurance, but so do other family members.

Consider the young parent who stays home to care for their children, or the family member caring for a sick or elderly loved one. They spend hours every day cooking, caregiving and cleaning—important work.

In fact, the market value of these services in the U.S. exceeds $140,300 per year.

Should tragedy befall a stay‑at‑home caregiver, the cost to outsource their services would place enormous financial strain on most families. That’s why caregivers need life insurance, too.

Myth 5: “Life insurance is Just for Final Expenses”

Fact: Life insurance is a lot more than that. Permanent life policies have a cash value component that grows over time and is easily accessible via policy loans and withdrawals.

For example, here’s how cash value might be utilized for people at various life stages:

Young Gen Z adult = Emergency/savings fund
Millennial parents = Kids’ college fund
Gen X professional = Retirement fund
Baby Boomer = Family legacy

And that’s in addition to covering final expenses and more!

Myth 6: “I Have Enough Life Insurance through Work”

Fact: Most employers provide their workers with 1‑2 times salary, which is not enough for most families to live on for long, especially if there’s a mortgage and other debts. And if you leave your employer, chances are, you’ll lose your coverage. The point is, you won’t really know if you have enough life insurance until you work the numbers—your numbers. Don’t know how? Ask an advisor for help.

Myth #7: “It’s Too Complicated!”

Fact: Yes, life insurance can seem daunting at first—that’s why people delay getting it. And that’s a shame, because you need to secure life insurance before you need it, no matter your stage of life.

But it’s also a subject that you can learn in a short time, and there are many resources available, including online tools like this one and help from knowledgeable advisors—like ours.

To learn more about solutions available to you,

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This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax, insurance or financial advice. You should consult with a professional advisor before engaging in any transaction. Some products may not be available in every jurisdiction where Pan‑American Life is licensed to do business. All products are subject to exclusions and other applicable terms and conditions.