Life insurance can be confusing. It doesn’t help that there seems to be a lot of misguided information floating around out there. Whether you’re young and just starting out, building a family, or planning for retirement, it’s important to separate fact from fiction. Below we debunk five common life insurance myths so you can make more informed decisions about coverage that protects your loved ones.
Life Insurance Myth #1: “I’m Young and Healthy, so I Don’t Need Life Insurance”
Let’s face it, life doesn’t always go as planned. When we’re young and healthy, it may not always be top of mind, but the unexpected can happen at any moment. An unexpected accident or illness could leave your family facing massive bills. If a young person dies unexpectedly, life insurance plans provide added peace of mind to help their beneficiaries cover expenses.
According to a 2025 Insurance Barometer Study by LIMRA and Life Happens, only 51% of American adults say they have some sort of life insurance coverage (individual and/or group).1 Gen Z adults report the lowest percentage of life insurance ownership of any generation at just 42%.1 Life insurance rates for young, healthy adults tend to be lower, so buying a policy early may secure a low rate before age or health issues drive costs up.
Life Insurance Myth #2: “Life Insurance is Too Expensive”
Adults age 30 and younger greatly overestimate how much life insurance costs.3 In fact, the 2025 Insurance Barometer Study found consumers often believe premiums are 10 – 12 times higher than they really are.1 Term Life Insurance plans can be very affordable, especially at younger ages. They offer flexible terms and protection for life’s biggest moments, like your family’s future, mortgage, or education costs.
Logix is proud to partner with Minnesota Life Insurance Company to offer affordable coverage that fits your needs and budget. Rather than assume it’s unaffordable, we recommend you schedule an appointment with a Financial Consultant at Logix to explore your options. You might be surprised at how reasonable coverage can cost.
Life Insurance Myth #3: “I Have Life Insurance Through Work (or Enough Savings), So I’m Covered”
While employer plans and personal savings help, they often fall short on their own. Consider the following limitations when relying solely on group life insurance:
- Limited group coverage: Many employer life insurance policies only cover a small multiple of your salary (often about 1 – 2 times your annual pay).4 This often isn’t enough to meet your family’s needs, and might leave large expenses, like a mortgage, unpaid.
- Nontransferable: If you leave or retire from your job, there’s no guarantee that you’ll be able to keep your coverage. Oftentimes, workplace life insurance is cancelled for former employees, so it’s a good idea to supplement it with a private policy as well.
- Insufficient coverage: Nearly half of Americans with life insurance are underinsured and don’t have enough coverage for their family’s needs.1 Insufficient coverage can leave families financially insecure should the primary wage earner die unexpectedly.
- Little savings: Nearly 40% of U.S. adults have $250 or less in their savings account, according to a survey by GOBankingRates.2 In an emergency, that small nest egg would disappear fast.
Due to these gaps in group life insurance, it’s smart to consider a personal life insurance policy in addition to any work benefit or savings. Even a moderate death benefit can greatly strengthen your family’s financial security if the unexpected happens.
Life Insurance Myth #4: “I Don’t Have Kids or a Big Salary, So I Don’t Need Life Insurance”
Life insurance isn’t just for parents or high earners. Even individuals who are single, retired, or don’t work a typical 9 – 5 can still benefit. Life insurance can help with:
- Final expenses and debts: If you have a mortgage, car loan, student debt, or other bills, life insurance ensures any outstanding debts get paid, so your family isn’t left with the costly burden.
- Stay-at-home contributions: Life insurance proceeds may pay for essential resources if unpaid work by a stay-at-home spouse and/or parent must be replaced.
- Cash value and legacy: Some permanent life insurance policies like Minnesota Life Insurance’s Whole Life Insurance not only provide guaranteed lifelong protection, but builds cash value over time, so you can use it if needed.
Financial Advisors often suggest having a life insurance policy totaling around 10 times your annual income to cover major costs like mortgages, college loans, costs of daily living, and more.5 Even without dependents, protecting your financial contributions or leaving a legacy can be worthwhile. You don’t have to be the main breadwinner to justify purchasing life insurance. If anyone relies on you, or if you have debts or end-of-life expenses, coverage can provide vital peace of mind.
Life Insurance Myth #5: “If I Have Health Issues, or I’m Older, I Can’t Get Life Insurance”
Many believe that if you’re older or have existing health issues, you won’t qualify for life insurance coverage. However, this isn’t true. While health conditions or advanced age typically equate to higher premiums, coverage is usually still possible. Furthermore, many insurers offer specific plan options for people with medical conditions.
It’s generally smarter to buy life insurance while you’re still relatively young to get the lowest rates. Don’t assume you’re out of luck if you’re older or sick though. One of our experienced and friendly Financial Consultants can guide you in the journey of finding a policy that best fits your health profile and budget.
Peace of Mind Starts Here
While life insurance covers final costs, it’s designed to be more of a safety net for your family’s future. It’s much more than just a one-time payout for funeral expenses; life insurance provides long-term security for those you care most about.
We know it’s a lot to consider, and likely not a subject you and your family want to think about, but Logix Financial Services is here to guide you and help you find the coverage that best fits your unique needs.
Contact us, schedule an appointment, or visit your local Logix branch to speak with a Financial Consultant today. We’re here to help you and your family feel confident and secure about whatever the future holds.
Sources:
1 https://www.limra.com/siteassets/newsroom/liam/2025/2025_facts_about_life_insurance.pdf
2 https://www.gobankingrates.com/banking/banks/how-much-money-do-americans-have-in-their-bank-accounts-2025
3 https://www.limra.com/en/newsroom/news-releases/2025/adults-age-30-and-younger-overestimate-life-insurance-cost-by-1012-times/
4 https://www.westernsouthern.com/life-insurance/employer-provided-life-insurance-coverage
5 https://fidelitylife.com/life-insurance-basics/life-insurance-101/using-the-life-insurance-rule-of-thumb/
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This material is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security or insurance policy. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial professional for further information.
Neither Logix Federal Credit Union nor Logix Insurance Services is affiliated with Minnesota Life Insurance Company.
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