Life insurance myths that won’t die

by David Lewis

I’ve been thinking a lot about life insurance lately.

It’s that time of year again… been seeing the usual life insurance myths making their rounds.

Here are a few of them:

  1. You should never mix insurance and investing.
  2. Permanent life insurance is too expensive, and salesmen make huge commissions.
  3. You don’t need a middle-man for your investments, and that’s what an insurer is.
  4. Term insurance is cheap.
  5. You don’t need a lot of life insurance.
  6. You can never buy too much life insurance.
  7. Whole life has a terrible rate of return.
  8. The only ones recommending permanent insurance are the ones making a commission off it or who have a vested interest in sales (this one has the distinction of being both false AND irrelevant).
  9. Term + investing always results in more money than buying whole life insurance (often, it’s the opposite).
  10. Complexity favors the seller, and whole life is too complicated.
  11. Even when it works out OK, it takes too long to see positive returns.
  12. Most people lapse their permanent insurance policies and lose all their cash value.
  13. You should only expect the guaranteed minimum in your insurance policy.
  14. You don’t need insurance when you’re old.

And the list goes on and on.

Anyway, these myths are so pervasive and have become so sacred, even most financial experts believe them on faith without doing any fact-checking whatsoever.

The sad part is most of these are debunked in the Life And Health 101 course (something every advisor has to take before getting a license to practice).

Moving right along…

If you want to know how life insurance can pass along your income to your beneficiaries after you die and protect your savings while you’re alive, then… hop on my email list and I’ll show you how.

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About David

David Lewis is a licensed life insurance agent, and has worked in the life insurance industry since 2004. During that time, he has worked with some of the oldest and most respected mutual life insurance companies in the U.S. To learn more about him and his business, go here.