Life insurance is one thing that a majority of people need. Here are the most common life insurance misconceptions and truths.

1. LIFE
INSURANCE
M Y T H S A B O U T
Presented By Robert Taurosa

2. From an early age, especially in the U.S., life insurance is a
concept most people are relatively familiar with. While the
concept is familiar, most people are unaware of the truths
versus the myths; and let’s be honest, who wants to think
about and plan for their death and its impact on their
loved ones? However, life insurance is one thing that a
majority of people need. Here are the most common life
insurance misconceptions and truths.

3. Maybe you are single. Perhaps you are a stay-at-home
parent. Maybe you are married but have no dependents.
Perhaps you are young and healthy. Even people within
these groups of maybes could use life insurance. For
example, a single woman might think that she doesn’t
need the protection, so she chooses to opt-out, but if
the worst happens, her medical bills and funeral costs
will need to be covered by her family, such as parents,
grandparents, etc. If the uninsured were a stay-at-
home parent, the breadwinner would not only need to
pay for funeral and medical costs but also for childcare
costs to return to work.
BECAUSE OF THIS,
THIS, AND THIS, I
DON’T NEED LIFE
INSURANCE.

4. I CAN’T AFFORD IT, OR I AM
UNQUALIFIED FOR LIFE
INSURANCE.
C O M P A N Y . C O M
S T U D I E S S H O W T H A T 8 0 % O F P E O P L E S U R V E Y E D ,
M I L L E N N I A L S , I N P A R T I C U L A R , O V E R E S T I M A T E T H E P R I C E F O R
A N I N S U R A N C E P O L I C Y . I N F A C T , M I L L E N N I A L S
O V E R E S T I M A T E D T H E C O S T S B Y 2 1 3 % O N A V E R A G E , A N D G E N
X E R S O V E R V A L U E D B Y 1 1 9 % . F O R E X A M P L E , W H E N A S K E D
H O W M U C H T H E A N N U A L P R I C E F O R A 2 0 - Y E A R , $ 2 5 0 , 0 0 0
T E R M L I F E I N S U R A N C E P O L I C Y F O R A H E A L T H Y 3 0 - Y E A R - O L D ,
R E S P O N D E N T S G A V E A M E D I A N E S T I M A T E O F
$ 4 0 0 - $ 6 0 0 / Y E A R . T H E A C T U A L C O S T I S $ 1 6 0 A N N U A L L Y .

5. In the same way that people overestimate the price of life
insurance, people overestimate the cost of adverse health on
life insurance. There are a lot of companies that cover a range
of health conditions, some that specialize in high-risk cases,
and even some who offers policies that are not medically
underwritten. They do tend to be more expensive and have
lower coverage limits, but even still, most people assume the
coverage and price will be worse than it is. For example, a 50-
year old man with high cholesterol and a family history of
heart disease can buy a 20-year, $250,000 policy for
$46/month according to NerdWallet’s comparison tool.

6. According to the IRS, or International Revenue Service, life insurance benefits are typically income-tax-free
and do not have to be reported. Now, if there is a source to trust on this subject, its that organization. The
income-tax-free money is provided to your family to help pay for numerous things, such as funeral
expenses, a mortgage, college tuition, etc.
BENEFICIARIES HAVE TO
PAY INCOME TAXES
FROM THE PROCEEDS.

7. THANK YOU
P R E S E N T E D B Y R O B E R T T A U R O S A