It’s one of the most important financial decisions you’ll make, but how much do you really know about life insurance? And how much of what you think you know is actually a myth?
Cutting through the confusion is key to making smart, sensible choices. The more you know, the less likely you are to take a wrong turn and either end up paying too much or finding yourself underinsured when the time comes to claim.
So let’s debunk some of the most common life insurance myths that could be holding you back from protecting what matters most.
Myth 1: I’m young and healthy, I don’t need life insurance yet.
It’s easy to think life insurance is something to consider later in life. But the truth is, the earlier you take out a policy, the more affordable it usually is. Locking in cover while you’re young and healthy can save you money in the long run – because you’ll be a known quantity to the insurer, rather than the risk of insuring a 60 year old who they have no relationship with.
Myth 2: Life insurance is only for people with children.
While it’s true that parents often seek life insurance to provide for their children, it’s not just for families with kids. If you have a partner, ageing parents, or anyone who relies on you financially, life insurance will look after them when you’re not around – even covering funeral costs or outstanding debts.
Myth 3: My employer provides life insurance—I’m already covered.
Many employers offer life insurance as part of a benefits package, but it won’t always be the type or cover that you need. Workplace policies often provide a fixed amount, which may not account for your mortgage, debts, or family’s living expenses. Plus, if you change jobs, you could lose that cover. Having your own policy ensures continuous, tailored protection.
Myth 4: Life insurance is too expensive.
Life insurance is usually much more affordable than you think. Premiums can start from just a few pounds a month, depending on factors like age, health, and the level of cover you choose. This is why we work with a wide range of top insurers, to find a policy that fits your budget and provides the peace of mind you deserve.
Myth 5: I don’t need life insurance because I have savings.
Savings are important and they do provide a sense of security, but it can be hard to envision how much you’ll need – especially with unexpected expenses like funeral costs, outstanding debts, or ongoing living expenses for your family. Life insurance provides a financial safety net that ensures your loved ones are taken care of, without depleting your hard-earned savings.
Myth 6: All life insurance policies are the same.
Good life insurance is never a one-size-fits-all deal. Policy types are diverse – like term life, whole-of-life, and over 50s plans – each designed to meet different needs. Choosing the right policy depends on your personal circumstances, financial goals, and the level of protection you want for your loved ones. Our experienced advisors can help you navigate these options to find the perfect fit.
Myth 7: I can’t get life insurance because of my health.
While certain health conditions can affect your premiums, they rarely mean you can’t get life insurance. Many insurers offer policies tailored to individuals with various health backgrounds – we have plenty of advisors who specialise in challenging cases and can find you affordable, appropriate cover for your circumstances.
Never let misconceptions prevent you from securing your family’s future. At Cover Direct, we provide clear, honest, jargon-free advice to help you make informed decisions about life insurance. And we’ll *never* push you into something that isn’t 100% right for you.
FAQs
Q1: Do I need life insurance if I’m young and healthy?
A: Yes, and sooner is actually better than later. While it’s common to think life insurance can wait until you’re older, taking out a policy when you’re young and healthy is typically more affordable. You can lock in lower premiums for the long term, as insurers view you as lower risk. Waiting until you’re older means the insurer has no relationship with you and faces more uncertainty, which usually results in higher costs.
Q2: Is life insurance only necessary if I have children?
A: No, life insurance isn’t just for parents. While many people with children do seek coverage to protect their kids’ future, life insurance benefits anyone who depends on you financially. This includes partners, aging parents, or other dependents. It can also cover funeral costs and outstanding debts, ensuring your loved ones aren’t burdened with these expenses when you’re gone—regardless of whether you have children.
Q3: If my employer provides life insurance, am I adequately covered?
A: Not necessarily. While employer-provided life insurance is a valuable benefit, workplace policies often offer fixed amounts that may not account for your specific needs like mortgage payments, debts, or your family’s living expenses. Additionally, this coverage typically ends if you change jobs, leaving you unprotected. Having your own personal policy ensures continuous, tailored protection that stays with you regardless of your employment situation.
Cover Direct is a UK-based life insurance broker dedicated to helping individuals find the right protection for their needs. We work with a panel of top insurers to offer a range of policies tailored to your circumstances.
