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.

Sign up for Kiplinger’s Free E-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
Get Kiplinger Today newsletter — free
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.
-
Stock Market Today: Good Feelings and Solid Data Lift Stocks
Resilience and de-escalation defined another generally positive day for financial markets.
-
Five Home Upgrades for Surviving Record-Breaking Heat
With global temperatures expected to hover at record highs for years to come, now’s the time to upgrade your home for long-term heat resilience.
-
What the HECM? Combine It With a QLAC and See What Happens
Combining a reverse mortgage known as a HECM with a QLAC (qualifying longevity annuity contract) can provide longevity protection, tax savings and liquidity for unplanned expenses.
-
721 UPREIT DSTs: Real Estate Investing Expert Explores the Hidden Risks
Potential investors need to understand the crucial distinction between a REIT's option to buy a Delaware statutory trust's property and its obligation.
-
I'm an Insurance Expert: Yes, You Need Life Insurance Even if the Kids Are Grown and the House Is Paid Off
Life insurance isn't about you. It's about providing for loved ones and covering expenses after you're gone. Here are five key reasons to have it.
-
My Professional Advice: When It Comes to Money, You Do You
This is how embracing the 'letting others be' and 'learning to surrender' mindsets can improve your relationship with money.
-
Direct Indexing Expert Explains How It Can Be a Smarter Way to Invest
Direct indexing provides a more efficient approach to investing that can boost after-tax returns, but is it right for you?
-
Smiley Faces in Serious Places: Emoji Use Pops Up in Legal Battles Over Inheritances
Estate planning attorney notes how emojis are crossing over from casual conversation to litigation. What was once dismissed as 'just an emoji' is now carefully scrutinized.
-
When Downsizing, Does a Continuing Care Retirement Community Make Sense?
The idea that you'll never have to move again may sound tempting, but how about the costs? A financial planner explores the pros and cons of this style of retirement living.
-
Fortune Favors the Gold: Expert Highlights a Little-Known Game-Changing Investing Strategy
Rather than only owning gold bullion itself and investing in gold mining companies, consider adding gold royalty companies to your gold investing strategy.