Three Life Insurance Myths That Distort Its Benefits

Throughout history, civilizations have created myths to explain phenomena they didn’t fully understand. These stories help make complex topics more relatable—whether it’s the legend of the Loch Ness monster, the mythical Excalibur sword, or the famous phrase supposedly uttered by Julius Caesar upon his assassination, “Et tu, Brute?”.

Much like these historical narratives, misconceptions have emerged around life insurance, preventing many from understanding its true value.

Let’s debunk three of the most common myths about life insurance and highlight its importance.

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Myth #1: Life Insurance Only Benefits Heirs

While the primary purpose of life insurance is to ensure financial security for surviving loved ones, many policies also offer access to an accumulated cash value.

This means that, under certain conditions, the policyholder can:

✔ Take out a loan using the policy’s cash value.
✔ Withdraw funds if needed.
✔ Use benefits in case of chronic, critical, or terminal illness.

In short, life insurance doesn’t just protect your family—it can also benefit you during your lifetime.

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Myth #2: Life Insurance Is Too Expensive

Many believe life insurance is unaffordable, but policy costs vary based on factors like age, health, coverage type, and payout amount.

For example, a 10-year term life policy with a $250,000 death benefit might cost:

✔ $16/month for a 20-year-old
✔ $77/month for a 60-year-old

As you can see, life insurance is more affordable than many think, especially when purchased at a young age and in good health.

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Myth #3: Investing Is Better Than Buying Life Insurance

Investing in stocks, businesses, or real estate is a great way to build wealth, but life insurance serves a different purpose.

💡 It guarantees an immediate financial payout to your beneficiaries in case of death, ensuring financial stability.
💡 The death benefit is tax-free, making it a smart financial planning tool for protecting your family’s wealth.

Unlike traditional investments, life insurance provides security no matter what happens.

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Talk to a Specialist

Still have questions about life insurance? Want to ensure your family’s financial future?

📞 Contact Univista Insurance today for personalized guidance and the best life insurance options for your needs.