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Life Insurance Myths

The reality of life insurance is different from what you've heard

There are widespread misconceptions and confusion surrounding permanent life insurance, but it’s time to demystify these myths! Permanent life insurance can strengthen a well-rounded financial plan by providing a range of benefits during your lifetime.


Actually, permanent life insurance provides death protection and offers cash value growth potential that can benefit you throughout your lifetime. First and foremost, permanent life insurance provides a guaranteed safety net.  In addition, the cash value in a life insurance policy increases on a tax-deferred basis and in most cases can be withdrawn as a loan, income-tax-free. Taking a loan from this cash value provides many possibilities during your lifetime – such as paying for college, starting a business, helping with retirement or even using it for an emergency fund.


Since many people only know about the death benefits of permanent life insurance, common belief is that it doesn’t make sense to own it without a spouse, children or other dependents to provide for. But the truth is, the living benefits of permanent life insurance can be used to meet your lifetime financial goals regardless of your life stage. Buying a permanent policy when younger and healthier helps lock in better rates while providing more time to build cash value for whatever the future may hold.


Frequently, the media recommends buying term insurance instead of permanent insurance.  Term is the least expensive life insurance that solely protects your family, but does not build cash value.  These so-called experts recommend making regular investments in other financial products instead of purchasing permanent life insurance But investing in the stock market can be risky, with no guarantees. And many people don’t follow through with regularly investing a set amount or simply don’t have time to adequately manage those investments. But if you meet with a financial professional to assess your goals and evaluate your needs, you may find that permanent life insurance allows you to achieve both the peace of mind through guaranteed death benefit protection, along with the possibilities that guaranteed cash value can offer.


As you go through different stages of life, your needs often change. Getting married, having children, buying a house, starting a business or even changing employment – are all times to reassess your life insurance. Additionally, many people assume they are all set because they have life insurance coverage through an employer. But most times, employer provided life insurance protection ends once employment does, and does not build cash value That’s why it’s important to review your insurance coverage periodically with a financial professional.

Talk with your financial professional

By virtually every measure, the need for and value of a financial professional has never been greater...

  • Today's financial climate is more complex than ever
  • The number of financial products available is seeming limitless
  • As your needs and family evolve, your financial plan needs to keep pace

A financial professional can help you build a financial plan that positions life insurance "first and center" and helps keep you on track to unlock all of life's possibilities. Search for a Financial Advisor.

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