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5 Biggest Myths About Life Insurance

Myth or Fact?
There are plenty of misconceptions and confusion around life insurance, which is the reason why many people avoid buying it for themselves and for their family members. Not many consumers understand how life insurance works, much less how to purchase it. We have debunked 5 of the most common myths about life insurance to help you understand it better. 
1. It’s Expensive

Millennials tend to overestimate the cost of a life insurance policy. With a little online research, you can get quotes and compare the premiums that suit your budget.

What’s more, you can now purchase term life insurance online at a lower cost. You can check out your free term life insurance quotes and buy it instantly from online providers such as Manulife at


2. Too Many Choices

While it’s true that we are spoilt for choices when it comes to buying life insurance, it all boils down to affordability and your needs. For most people, a term life insurance policy may be the best choice as it offers straightforward, customizable and least expensive protection. 

Also read: Why Term Life Insurance Is Perfect for Millennials


3. Young People Don’t Need Life Insurance

Just because you’re young, it does not mean accidents won’t happen. Life insurance gives you coverage against possible critical illnesses, disability, and even accidental death. Another reason why everyone should consider getting a life or a term life insurance as early as possible is because the policy will cost more as you age, as you’re more likely to develop health issues. 


4. It’s Better to Have Savings than Insurance

Sure, it is important to have savings, but you may not have enough time to save up enough if you develop a critical illness in your, say, mid-30s. Opt for a term life insurance if you want to have a less expensive insurance policy that would still give you adequate coverage. Besides, you never know when you might use up your savings for something else - travel, car repairs, or your wedding. 


5. Your Employee Insurance Benefit is Sufficient

Unless you’re thinking of working at the same company for the rest of your life, this misconception is highly unrealistic. You will be vulnerable once you leave the company - or lose your job. There’s also the factor that your employee life insurance payout may be significantly low. This is definitely not enough to help sustain your family when you’re no longer around to provide for them.

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