Common Myths About Life Insurance Debunked

You've probably heard plenty of opinions about life insurance over the years. Some might have put you off exploring cover altogether. Let's separate fact from fiction and examine what's really true about life insurance.

"Life insurance is too expensive for ordinary families"

This is one of the most persistent misconceptions about life insurance, but the reality is that life insurance can be much more affordable than many people assume.

The actual cost depends on several factors: your age, health, whether you smoke, and how much cover you need. A healthy 30-year-old non-smoker might pay as little as £10-15 monthly for £200,000 of cover over 25 years. When you consider that's protecting your family's financial future, life insurance is remarkably affordable for most households.

"Young adults don't need life insurance"

If you're young, healthy, and mortgage-free, you might think life insurance isn't relevant yet. But consider this: younger applicants typically secure the lowest premiums because insurers see them as lower risk. Lock in affordable rates now, and you'll benefit from those low premiums for the entire policy term.

Plus, if you have any debts, dependents, or someone relying on your income, life insurance becomes essential regardless of your age. The experienced advisers at Clearwater Financial Planning, with offices in Kingsbridge, Plymouth, and Launceston, can help you assess whether cover makes sense for your current situation.

"I'm too old to get life insurance"

Age certainly affects premiums, but you're rarely too old to secure cover. Many insurers offer policies to applicants well into their 70s or even 80s. The key is finding the right type of policy for your circumstances.

Over-50s life insurance plans, for instance, typically guarantee acceptance without medical exams. While premiums are higher than policies taken out in your 30s or 40s, they can still provide valuable financial protection for funeral costs and leaving something for your family.

"My employer's life insurance is enough"

Workplace life cover is a valuable benefit, usually offering between one and four times your annual salary. However, it comes with limitations. The amount might not adequately protect your family's lifestyle if something happened to you, and you'll lose this cover if you change jobs or become self-employed.

Having your own policy means the cover moves with you throughout your career, regardless of employment changes.

Getting the right advice matters

Since 2006, Clearwater Financial Planning has helped families across Devon and Cornwall understand their protection needs without the confusion. Life insurance doesn't need to be complicated or unaffordable when you have clear, honest advice tailored to your circumstances.

Don't let myths stop you from protecting what matters most. Contact Clearwater Financial Planning today to discuss how affordable life insurance could secure your family's financial future