Life insurance can feel like a confusing topic, and with so many misconceptions floating around, it’s easy to put it off or assume it’s not for you. But this misinformation could mean missing out on valuable cover — or paying more than you need to.
Let’s bust some common life insurance myths and make sure you’re making the right choices for your family.
1. “Life Insurance is Too Expensive”
Many people assume life insurance will cost them a fortune, but in reality, it’s often much cheaper than expected. In the UK, you could get a policy for as little as £5-£10 a month. The younger and healthier you are, the cheaper it tends to be, so waiting too long could actually make it more expensive.
Policies like level term life insurance can often be cheaper as they only last for a set time. This is often between 5-55 years. If you outlive the term, no payout will be made.
2. “I Don’t Need it Because I’m Young and Healthy”
Being young and healthy doesn’t mean you’re invincible. Life is unpredictable, and the unexpected can happen at any time. The best time to get cover is when you’re in good health because you’ll get the lowest rates.
If you wait until later — especially after developing a health condition — premiums will be higher, or you might struggle to get cover at all.
3. “I Get Life Insurance Through Work, So I’m Covered”
Many workplaces offer life insurance as part of their benefits package, but it’s usually not enough to fully protect your family.
Employer-provided life cover (often called “death in service”) typically pays out two to four times your salary — which might sound like a lot but often isn’t enough to cover a mortgage, childcare, and long-term family expenses.
Plus, if you change jobs, you might lose the cover entirely. It’s always worth having a personal policy to make sure your family is properly protected.
4. “Stay-at-Home Parents Don’t Need Life Insurance”
This is a big myth. Even if a stay-at-home parent doesn’t earn a salary, they provide massive financial value — childcare, housework, school runs, meal prep, and much more.
If something happens to them, the surviving partner might have to reduce their work hours or pay for help, which could be very expensive. Life insurance helps cover those extra costs and keeps the household running smoothly.
5. “Life Insurance is Only for People with Kids”
While life insurance is especially important for parents, it’s not just for those with children. If you have a partner, mortgage, or debts, a life insurance payout could help your loved ones avoid financial struggles if you pass away. Even if you’re single, you might want to consider it to cover funeral costs or leave something behind for family members.
6. “If I Have Health Issues, I Won’t Qualify”
Many people assume they can’t get life insurance if they have a pre-existing medical condition, but that’s not always true. There are insurers who specialise in covering people with health conditions, although premiums might be slightly higher. It’s always worth shopping around or speaking to a broker who can find the best policy for your situation.
7. “I’ll Have to Do a Full Medical Exam”
Not necessarily. Many providers offer no medical life insurance specifically designed for those who may not qualify for regular cover due to health problems. Instead of requiring a medical exam, insurers may ask a few health-related questions. As long as you answer honestly, the application process is usually quick and straightforward.
If you have a medical condition, you might need to provide more details, but it doesn’t always mean a full medical exam.
8. “I Can’t Change My Policy Once I Get It”
Life insurance isn’t set in stone. You can adjust your policy as your life changes, whether that’s getting married, having kids, buying a home, or even earning a higher salary.
If you took out a small policy when you were younger, it might be worth reviewing it now to make sure it still meets your family’s needs. Many policies allow you to increase cover without medical checks after major life events.
9. “Life Insurance Payouts Are Taxed”
In the UK, life insurance payouts are usually tax-free, but there’s one important catch: inheritance tax (IHT). If your policy is part of your estate and your total assets exceed the IHT threshold, your family could lose a chunk of the payout to taxes.
The good news? Putting your policy into a trust can help avoid this, ensuring your loved ones get the full amount.
10. “I’ll Sort It Out Later”
This is probably the biggest and most dangerous myth of all. It’s easy to put life insurance on the back burner, but none of us can predict the future. The longer you wait, the more expensive it gets — and there’s always the risk of developing a health condition that makes it harder (or even impossible) to get covered.
Getting cover sooner means peace of mind, knowing your loved ones will be financially secure no matter what happens.
If you don’t have life insurance yet, why not take a few minutes today to look into your options? It’s one of those things you’ll be glad you sorted — just in case.
