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10 Life Insurance Myths Debunked

By Jake Bronstein Feb 6, 2017

After interviewing hundreds of parents about why they do or don’t buy life insurance, some familiar arguments started taking shape among those choosing to go without.

The good news is: You’re not alone if you believe these myths. The better news is: It’s never too late to purchase coverage.

1. “I Can’t Afford It Right Now”

Sure, you have a lot of dueling financial priorities. But term life insurance coverage at Fabric starts at just $11 per month (for $100,000 in coverage).* And you can apply in just five minutes.

2. “I’m Not Going to Die Anytime Soon”

Unless you have a crystal ball, there's no way to know what might befall you, or when. So find out: Do you really need life insurance?

3. “I Get It Through My Work”

People who say this may not realize how little coverage their work actually provides. If your work offers life insurance at all, coverage usually doesn’t exceed $50,000 and it expires when you leave your job. If you intend to buy coverage when it expires, that’ll put you back at square one, which can be costly (see #4).

4. “I’ll Buy Life Insurance Tomorrow”

Be careful with that. Life insurance premiums increase as you age. Let’s say you wait five years before applying. Depending on how old you are when you first made that choice, you could wind up paying significantly more, if your health hasn’t declined.

5. “My Parents Will Take Care of My Family If Something Happens to Me”

They raised you after all. But that was a long time ago. Even if they’re up to the physical challenge, odds are they haven't included this in their own financial plan.

6. “All That Money Is Wasted If I Don’t Die”

Term life insurance isn’t meant to be an investment, it’s about mitigating the most critical risk to your family. Think of it like this: Is homeowners insurance a waste if your house never burns down? Of course not. Knowing there’s a plan in place to take care of the huge costs that would come with an unexpected calamity can help put your mind at ease and give you a sense of confidence.

7. “I Can Get a Better Return Investing the Money”

The purpose of life insurance is to offer financial protection to help take care of your family’s immediate and future needs in the event that you unexpectedly pass away. Once your policy is in force, you’re covered for the full coverage amount.

8. “I Just Don’t Have the Time Right Now”

Signing up for some types of life insurance policies takes way more time than you’d expect, often weeks from the time of the first quote until the policy is actually signed and goes into effect. But technology is changing that fast. With Fabric, you can apply for term life insurance in just five minutes.

9. “I Don’t Have an Income That Needs Replacing”

Ah, the swan song of the stay-at-home parent. You figure you’re not a bread-winner, so no bread needs replacing if you’re taken out of the equation. But your partner needs to keep working to keep the family afloat. If you die unexpectedly, all of the chores you used to do (everything from watching the kids to running errands) now falls on them.

They’ll likely need help, and that help costs money. It's true: stay-at-home parents have their own unique life insurance considerations.

10. “I Don’t Trust Life Insurance Companies; They Don’t Pay”

Check whether the insurer you're considering is highly rated, based on its A.M. Best rating. Top ratings indicate an insurer's financial strength and ability to meet its ongoing insurance policy and contract obligations. Fabric’s policies are issued by Vantis Life Insurance, rated A+ (“Superior”) by A.M. Best.

Plus, life insurance is regulated by authorities like the NAIC and states' departments of insurance.

*Sample rate is for a 25-year-old female in excellent health. Get a quote to see personal pricing.

Fabric exists to help young families master their money. Our articles abide by strict editorial standards.

Fabric by Gerber Life exists to help young families master their money. Our articles abide by strict editorial standards.

Information provided is general and educational in nature and is not intended to be, and should not be construed as, financial, legal, or tax advice. Laws of a specific state or laws relevant to a particular situation may affect the applicability, accuracy, or completeness of this information. Federal and state laws and regulations are complex and are subject to change. We make no warranties with regard to the information or results obtained by its use, and disclaim any liability arising out of your use of, or reliance on, the information.

Fabric by Gerber Life offers a mobile experience for people on-the-go who want an easy and fast way to purchase life insurance.


Written by

Jake Bronstein

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© 2023 Gerber Life Agency, LLC

Term Life Insurance Policy Series ICC22 2205-4004 WSA and Accelerated Death Benefit Rider policy series ICC22 2205-2623 WSA (and state variations where applicable) issued by Western-Southern Life Assurance Company, Cincinnati, OH which operates in DC and all states except NY, and distributed by Gerber Life Agency, LLC using Fabric Technologies. Gerber Life Agency, LLC is an affiliate of Gerber Life Insurance Company (est. 1967). All are members of Western & Southern Financial Group (Western & Southern). Issuance of coverage for Term Life Insurance is subject to underwriting review and approval. Please see a copy of the policy for the full terms, conditions and exclusions. Product provisions, availability, definitions and benefits may vary by state. Payment of benefits under the life insurance policy is the obligation of, and is guaranteed by, the issuing company. Guarantees are based on the claims-paying ability of the issuer. Products are backed by the full financial strength of the issuing company.

All sample pricing is based on a 30-year old F in Excellent health for the coverage amount shown and a 10-year term policy, unless otherwise stated. Gerber Life Agency, LLC (GLA) is an insurance agency licensed to sell life insurance products. GLA will receive compensation from Western-Southern Life Assurance Company for such sales. The NAIC Company Code for Western-Southern Life Assurance Company is 92622.

Western-Southern Life Assurance Company's A+ Superior A.M. Best Rating: Superior ability to meet ongoing insurance obligations (second highest of 13 ratings; rating held since June 2009). Ratings are subject to change from time to time. The ratings shown here are correct as of 09/03/2022. For more information about a particular rating or rating agency, please visit the website of the relevant agency.

Plan like a parent. is a trademark of Fabric Technologies, Inc.

Gerber Life is a registered trademark. Used under license from Société des Produits Nestlé S.A. and Gerber Products Company.

In the State of California, Gerber Life Agency, LLC is known as and does business as Gerber Life Insurance Agency, LLC.

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