Life Insurance Misconceptions

Maggie Overholt
Maggie Overholt
Senior Editor

Is life insurance worth it?

You’ve probably been told that life insurance is important — but once you start digging in, there’s a lot of conflicting information to sift through. Even simple questions like “when do I need life insurance?” and “who can get life insurance?” might yield a wide range of answers. It can be hard to know what to believe.

Answer these true/false questions to find out how much you really know about life insurance and:

  1. Cost
  2. Stay-at-home parenting
  3. Health
  4. Employer-sponsored life insurance
  5. Whole plans vs. term plans
  6. Dependents
  7. Pre-existing conditions

Quiz: The 7 Biggest Misconceptions About Life Insurance

Photo by rawpixel on Unsplash

True or false?
Life insurance is too expensive for many people to afford.

Photo by Shuto Araki on Unsplash

True or false?
If you’re a stay-at-home parent, or don’t draw income, you don’t need life insurance.

Photo by Form on Unsplash

True or false?
If you’re young and healthy, you should still buy life insurance.

Photo by rawpixel on Unsplash

True or false?
If you have group life insurance through your employer, you don’t need to buy individual life insurance.

Photo by Olu Eletu on Unsplash

True or false?
Sometimes it’s better to invest in whole life insurance than to buy a cheaper term life policy and invest the difference.


Photo by Dario Valenzuela on Unsplash

True or false?
If you don’t have any dependents, you don’t need life insurance.

Photo by Joey Huang on Unsplash

True or false?
You can buy life insurance even if you’re in poor health or have a pre-existing condition.

The Bottom Line

It’s important to start thinking about life insurance early, even if you don’t have kids or a mortgage yet. The good news? It’s probably more accessible and affordable than you think. We’ve compared term life insurance prices for a variety of scenarios (male, female, younger, older, healthy, unhealthy), and costs are generally less than $20 per month.

If this is your first time considering life insurance, just remember that it’s crucial to compare multiple companies before you buy. Every insurer has unique offerings and calculates cost a little differently — so you won’t know which is best for you until you’ve looked at plans and pricing side-by-side. Need help? Start with our life insurance buying guide; it’ll point you towards the right policy type based on your needs.

Our Life Insurance Reviews

Want to learn more about individual companies’ specific offerings? You can check out some of our reviews here: