Life insurance explained: Debunking common life insurance myths

Life insurance can feel like a complicated and emotional topic, and common misconceptions often add to the confusion. Understanding what coverage includes, how policies work, and how to get started can help make the process clearer. If you’re looking for life insurance explained in a simple way, it helps to start by separating common life insurance myths from the facts.

Life insurance myth: I don’t need life insurance

Some may assume life insurance is only for those with children or limited financial resources, but coverage can serve many different purposes depending on a person’s financial goals and circumstances. Life insurance may help provide financial support for loved ones, assist with estate or business planning, help cover final expenses or outstanding debts, help supplement retirement income, or support legacy goals. Because every situation is different, life insurance can play an important role in a financial strategy, regardless of life stage or income level.

Life insurance fact: Many people can benefit from life insurance

Even if life insurance doesn’t feel necessary right now, it can still play a valuable role in your overall financial picture. The truth about life insurance is that it’s not just for people with dependents; coverage can help with final expenses, pay off outstanding debts, or simply lock in coverage while you’re younger and healthier. Depending on the policy, insured eligibility, and optional riders selected, some products may also provide access to benefits while living, which can be used to cover certain medical costs in the event of a qualifying chronic, critical or terminal illness. One of the most important things to know about life insurance is that coverage can be useful in more situations than many people realize. It’s often easier to apply for coverage before you think you need it, rather than applying for coverage later. Depending on your goals and financial situation, life insurance can help provide financial flexibility for the future.

Life insurance for stay-at-home parents

While stay-at-home parents may not earn a traditional paycheck outside of the home, the services they provide are an integral part of caring for a family. Along with taking care of the children, stay-at-home parents are often in charge of cooking, tutoring, shopping, household maintenance, and transportation, equivalent in some reports to nearly $4,000 per month. Life insurance coverage for a stay-at-home parent can help ease the financial transition after a loss by helping the surviving partner cover immediate costs and future expenses, allowing your family to maintain their lifestyle even after you’re gone.

Life insurance for young adults

Thinking about life insurance may not feel like a priority, especially earlier in life, but it can still serve a meaningful purpose. While coverage is often associated with supporting a spouse or children, it can also help ease financial burdens for other loved ones, such as parents or siblings. Life insurance benefits can help cover expenses like medical bills, funeral costs, or outstanding debts, including private student loans, a mortgage, or other shared debts. For those who own a business or share financial responsibilities with a co-signer, the money from a life insurance policy can make it easier for a business partner to continue the company, or it can help a co-signer take care of unpaid bills. Plus, you’ll never be younger than you are right now. Since age and health can affect the cost of life insurance, young adults generally pay lower premiums than when they’re older.

Life insurance for older adults

While there are benefits to buying life insurance at a young age, purchasing a policy when you’re older can still be very beneficial. Coverage can provide a way to leave an inheritance to loved ones, relieve the financial burden of final costs such as funeral expenses, help beneficiaries manage potential estate-related expenses or taxes, and assist with paying off debts that may be left behind. It can also provide added reassurance, knowing there is a plan in place to help protect your family’s financial stability.

Life insurance myth: I can’t buy life insurance because of my health issues

A common life insurance myth is that having a health condition automatically disqualifies someone from getting coverage, often because they assume they’ll be denied or it will be too expensive. While certain health conditions can impact eligibility or cost, the truth about life insurance is that many individuals with health concerns can still qualify for coverage. Once an application is submitted, an underwriter will review the specific details of your situation and let you know if you qualify. Underwriting guidelines continue to evolve, so people who may have assumed they would not qualify, may still have coverage options available.

Life insurance fact: Life insurance is possible for people with pre-existing conditions

Many people with common or well-managed conditions are still eligible for life insurance. Life insurance for people with pre-existing conditions can vary based on the type of condition, how it is managed, and the underwriting guidelines for the policy being considered. Conditions such as high blood pressure, asthma, diabetes, or even a history of certain illnesses may still qualify, particularly when they are stable and being actively managed. Insurers tend to look at the broader picture, including how a condition is controlled, how long it’s been present, and overall lifestyle factors. In some cases, a pre-existing condition may influence the type of policy available or the cost of coverage. For example, applicants may be offered coverage with adjusted premiums, different benefit structures, or policies that rely less on medical underwriting. Even with a health history, there are often paths forward that can provide meaningful financial protection.

Life insurance myth: Life insurance is too expensive

One of the biggest misconceptions about life insurance is that coverage is expensive. A 2025 study conducted by Life Happens and LIMRA found that about three-quarters of adults overestimate the true cost of life insurance. Unfortunately, this life insurance myth is often fueled by a lack of understanding of the product and how pricing works. Understanding a few basic life insurance facts can help make the cost of coverage feel less surprising. The amount of coverage needed will differ from person to person, so it’s important to explore different policy types, compare quotes, or work with a financial professional to get up to speed on your life insurance facts.

Life insurance fact: You can tailor a life insurance policy to your budget

Life insurance may be more affordable than you might expect, depending on the type and amount of coverage selected. Certain term life insurance policies can offer coverage with premiums at a low cost. When selecting a coverage amount, you don’t necessarily need a high-dollar policy to put financial protection in place. Find an option that can help your family replace lost income and cover final expenses or costs of living. As your needs change or your family grows, it’s a good idea to revisit your coverage to see if it still matches your situation and provides adequate financial protection. Remember that life insurance is designed to protect your loved ones’ futures, so it’s important to weigh both the benefits of the coverage and the cost.

Life insurance myth: Purchasing life insurance is too confusing

For many people, life insurance feels complicated or difficult to understand, which is why misconceptions about it are so common. With unfamiliar terminology, multiple policy types, and assumptions about cost or eligibility, it’s easy to feel unsure about where to start or what coverage actually makes sense. That uncertainty often leads people to delay decisions that could otherwise provide meaningful financial protection and added confidence. Having life insurance explained by a financial professional can make the process feel more approachable.

Life insurance fact: Professionals can simplify what to know about life insurance

The good news is that there are financial professionals whose role is to simplify the process, replace myths with life insurance facts, and explain how coverage works. During your conversation, they can walk you through the lingo, discuss the different types of life insurance, help you understand the benefits, answer questions, and help identify coverage options that align with your goals. Taking the time to debunk common life insurance myths can make the process feel far less overwhelming and help you make more informed decisions about protecting your family’s future. For many people, this conversation can help clarify what to know about life insurance before applying for coverage.

Learn more truths about life insurance with Midland National

When life insurance is explained in clear, simple terms, it becomes easier to separate fact from fiction and make more confident decisions about your future. By moving past common myths, you can better evaluate coverage options that align with your goals, budget, and personal circumstances. Midland National offers a range of life insurance solutions designed to meet a variety of financial protection goals for you and your loved ones. Talk to your financial professional about how Midland National can help support your goals and protect your loved ones.

The term financial professional is not intended to imply engagement in an advisory business in which compensation is not related to sales. Financial professionals that are insurance licensed will be paid a commission on the sale of an insurance product.

LIMRA is a third-party company and is not affiliated with Midland National® Life Insurance Company.

Life Happens is a nonprofit organization dedicated to helping consumers make smart insurance decisions to safeguard their families’ financial futures. Life Happens does not endorse any insurance product or agent.

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