Life Insurance: Let’s Separate the Facts From Fiction
Think it costs too much and is a hassle to get? You might be surprised by the reality.

The past two years have spurred a heightened awareness in families who have realized that they may not be as financially prepared for the future as they had hoped. According to the LIMRA and Life Happens 2022 Life Insurance Barometer, sixty-seven percent of Americans say that the pandemic has been a wake-up call for them to reevaluate their finances, and life insurance is among the top items on their financial health checklists.
We know that there is a substantial gap in coverage for many Americans, with 106 million adults saying they need life insurance or more of it. This can be due to typical procrastination or a misunderstanding of the cost and process of purchasing a policy. September is Life Insurance Awareness Month, a perfect time to build your knowledge and separate facts from fiction when it comes to this critical financial-protection tool.
Fiction: Life insurance costs too much.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Fact: Most people overestimate the cost of life insurance.
Nearly 80% of Insurance Barometer respondents overestimate the cost of a life insurance policy. The study confirms that the likelihood of owning life insurance is higher among older generations.
Thirty-five percent of Millennials say they do not own life insurance because it is too expensive, and 45% believe they would not qualify for coverage. Yet, young, healthy adults are actually the most likely to qualify and also secure the best rates. In reality, today’s tools allow you to more easily search for and find policy coverage that fits your budget. It’s OK to start small.
And anytime you work with a financial professional, you can evaluate your coverage. Over your lifetime, you can adjust your policy choices to meet changing needs.
Fiction: It’s too much of a hassle to buy life insurance.
Fact: Purchasing a life insurance policy is now faster than ever.
Technology advances have greatly simplified many life insurance purchases. In minutes, you can get estimates of coverage amounts and basic costs. In some cases, medical exams may not be necessary.
Prudential and other companies are working to enhance digital platforms and systems to make life insurance accessible to more people, with ease. You can often acquire coverage in days, not weeks.
Of course, more complicated planning scenarios and increased health risks may lengthen the process. But in those cases, that extra time assures you have the solution that best fits your needs.
Fiction: Life insurance benefits are for others, after you die.
Fact: Life insurance can offer benefits for you while you are alive.
In addition to providing a valuable death benefit for your loved ones, many life insurance policies offer cash value that you can use during your lifetime. Certain “living benefits” can help pay for anything from medical care to other personal expenses. Talk with a financial adviser to determine what works for you.
Fiction: I don’t really need to make my family rich when I die.
Fact: Planning ahead provides protection from the unexpected.
According to the Insurance Barometer study, 1 in 10 families reported that they would have financial issues by the end of the week if the primary income earner were to die.
In many cases, life insurance is about providing financial protection for your loved ones by replacing needed income. It can give you peace of mind for many circumstances. You choose how much your family will receive. Maybe that’s enough to help maintain their standard of living after you are gone, or it is enough to pay off a mortgage or outstanding loan. What matters most is that planning for the unexpected allows your family to manage financially in your absence.
Talking about end-of-life planning is never easy, and it can be uncomfortable. We can reimagine these difficult scenarios when we see life insurance for what it really is: a smart, easy and affordable way to replace income, save on final-expense taxes, provide funds, supplement retirement and help future generations have more financial security.
It’s the ultimate way of saying to your loved ones: “I love you, and I’ve got you.”
Take action today
Now that you know some of the facts vs. the fiction of life insurance, start taking action to ensure that you and your family have the life insurance coverage you need. Doing your own research or reaching out to a financial adviser is a great next step to bringing you closer to providing more financial security for those you care about the most.
The Prudential Insurance Company of America, Newark, NJ.
1063444-00001-00
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Salene Hitchcock-Gear is president of Prudential Individual Life Insurance, a business unit of Prudential that offers competitive solutions to meet the needs of consumers through the manufacturing and distribution of a diverse portfolio of life insurance products. An insurance industry veteran with more than 30 years of experience, Hitchcock-Gear joined Prudential in 2017 as chief operating officer of Prudential Advisors, the Company’s national sales organization with more than 3,000 financial professionals, advisors and fee-based financial planners who offer clients a broad range of financial solutions. She became president of the Individual Life Insurance business in 2018.
-
S&P, Nasdaq Hit New Highs: Stock Market Today
A late-day rally wasn't enough to lift the Dow into the green as its six-session winning streak came to an end.
-
Five Things to Consider Now If You Want to Retire in 2026
To retire with confidence in the year ahead, tackle these essential tasks right now.
-
Striking Gold (or Gas): A Financial Pro Unpacks the Nuances of Energy Investing
Investing in the energy industry, particularly oil and gas, involves understanding the facts about how projects generate returns through cash flow and long-term asset building, while also being aware of the risks.
-
Escaping the New Golden Handcuffs: A Financial Expert Has a Plan for Today's Executives
Feeling stuck in your job? It could be your complicated compensation package, but it also could be where you live, your family or even how you view yourself.
-
I'm a Financial Planner: Here's How to Invest Like the Wealthy, Even if You Don't Have Millions
Private market investments, once exclusive to the ultra-wealthy and institutions, have become more accessible to individual investors, thanks to regulatory changes and new investment structures.
-
Four Ways a Massive Emergency Fund Can Hurt You More Than It Helps
Saving too much could mean you're missing opportunities to put your money to work. Redirect some of that money toward paying off debt, building retirement funds, fulfilling a dream or investing in higher-growth options.
-
I'm a Financial Planner: How to Dodge a Retirement Danger You May Not Have Heard About
Timing is everything, and sequence of returns risk can mean the difference between a retirement nest egg that's overflowing … or empty.
-
Caring for Aging Parents: An Expert Guide to Easing the Financial and Emotional Strain
Early conversations, financial planning and understanding the progression of care needs can help to mitigate stress and protect family relationships.
-
I'm a Financial Adviser: The OBBB Is a Reminder for Older People to Have a Long-Term Plan
The new tax bill presents a good opportunity for retirees to revisit tax plans, look into doing some Roth conversions and consider plans for long-term care.
-
I'm an Insurance Expert: This Is Exactly Why Your Insurance Rates Are Soaring (and What You Can Do)
A dramatic rise in the frequency and cost of severe weather and wildfires means you need to prepare, prepare, prepare — no matter where you live — for higher premiums.