Life Insurance: Facts vs Myths

While many of us understand the value of life insurance, millions of families don’t have enough coverage or any coverage at all. Since the COVID-19 pandemic, the interest in life insurance has increased. So, what’s the holdup? Many people are concerned about the cost or whether they qualify.

Let’s address some common misconceptions about life insurance.

Myth 1: Life insurance is expensive

Fact: Premiums cost less than most people think

According to a LIMRA International survey*, cost was the top reason for not getting life insurance. The same survey found that over half of Americans overestimated the cost of coverage by as much as three times the actual cost of Term Life insurance. Especially for young people, life insurance can cost as little as a few cups of coffee. A healthy 30-year-old female can get $250,000 of 20-Year Term life insurance for about $15.00/month.

*Source: https://www.limra.com/siteassets/research/research-abstracts-shared/2024/securing-the-future/2024-insurance-barometer---securing-the-future-infographic.pdf

Myth 2: I don’t need life insurance right now 

Fact: Getting life insurance while you’re young can pay off later

Getting life insurance while you’re young and healthy can help you lock in lower rates. Life insurance premiums are determined by your age and your health. The younger you are the lower the rate that you can lock in now. If you wait until you're older you may have health conditions that increase your premium rate or make you uninsurable for certain types of insurance. Not sure if now is the right time to buy life insurance? Check out our article on the different life stages when you should get insured.

Myth 3: I can’t get life insurance because of my health condition

Fact: Many life insurance policies do not require medical exams

 In most cases, adults can get term life insurance without taking a medical exam* and those of age 50+** qualify for Guaranteed Life Insurance regardless of health.

*Gerber Life Term Life insurance requires a medical exam for those age 55+ who apply for more than $100k in coverage or anyone applying for more than $1,000,000 in coverage.  
**To be eligible for coverage you must be a U.S. citizen between 50 and 80 years old (New York residents, maximum age of 75) residing in the US or permanent legal resident. Total limit of all combined Gerber Life Guaranteed Life policies is $25,000. Gerber Life Insurance Company will not issue insurance for any proposed insured when a POA or Guardianship exists on the proposed insured, except legal guardians of children.

Myth 4: I have life insurance through work, so I don’t need more coverage

Fact: Many employer-sponsored policies don’t provide enough coverage

 Employer-sponsored life insurance policies may not offer enough benefits and you may lose your coverage when you change jobs. Many employers’ life insurance can only offer a fraction of what your family may need which is why a supplemental life insurance policy could be the right choice for you.

Myth 5: Getting life insurance is complicated

Fact: You can get coverage online, often in minutes

These days you can go online to get a quote almost instantly and you can get approved for coverage the same day.

Questions? Ready to get insured? Call 1-800-704-2180 to speak to a Gerber Life Insurance specialist.