5 Life Insurance Myths That Could Be Costing You Big

By Dr. Jose G. Cardenas | Chief Tax Strategist, The C & R Group, LLC
Published in Financial Horizons: Insights for Building Wealth and Securing Your Legacy

When most people hear “life insurance,” they think of death benefits and funeral coverage. What they don’t realize is that life insurance—especially when purchased strategically—is a cornerstone of long-term financial planning.

Unfortunately, misinformation keeps too many people from getting the protection and benefits they need. Let’s bust the five most common myths keeping individuals, families, and business owners from using life insurance to build wealth, reduce taxes, and protect their legacy.

💸 Myth 1: Life Insurance Is Too Expensive

This is one of the biggest misconceptions. The truth? Life insurance is often far more affordable than people think. In fact, locking in coverage early—while you’re healthy—can secure decades of protection for just dollars a day.

Bonus: Certain types of life insurance (like Indexed Universal Life or IUL) can also grow cash value, giving you access to tax-free income later.

🧬 Myth 2: You Don’t Need It If You’re Young and Healthy

Being young and healthy is exactly why you should buy life insurance now. Your premiums will be lower, your coverage will be easier to qualify for, and your policy has more time to accumulate tax-advantaged cash value.

Think of it as buying money at a discount while you can.

🏥 Myth 3: Insurance Companies Won’t Pay If You Have Health Issues

Life insurance companies assess health risks—yes—but they also offer a variety of policy options for people with medical conditions, including graded benefits, guaranteed issue policies, or underwritten plans with custom pricing.

Plus, being denied once doesn’t mean you’re denied forever. With the right advisor (like us), we find the carriers and solutions that match your unique situation.

👤 Myth 4: You Don’t Need It If You’re Single and Have No Dependents

Life insurance isn’t just about replacing income—it’s also about covering debts, medical bills, funeral costs, and building a financial legacy.

Even if you’re single today, your health status can change tomorrow. Buying now ensures you have options for the future, including tax-free retirement income from cash value policies.

🏢 Myth 5: Employer-Provided Life Insurance Is Enough

Most group policies through employers offer limited coverage—often just 1x your salary. That’s rarely enough to protect your family or meet your long-term financial goals.

Even worse, employer coverage doesn’t move with you. If you change jobs, you lose your policy. Having your own personal life insurance plan means you stay protected no matter where you work.

🔐 The Truth: Life Insurance Is About Living Well, Not Just Dying Well

Modern life insurance is a multifunctional financial tool:

• Protects loved ones
• Covers business debt
• Builds cash value you can access
• Creates tax-free retirement income
• Passes wealth to heirs tax-efficiently

You’re not just buying coverage—you’re building security, freedom, and peace of mind.

📣 Final Thoughts: Don’t Let Myths Define Your Financial Future

Believing these myths could cost you thousands—if not more. Whether you're 25 or 55, single or married, a business owner or just starting out, there’s a life insurance strategy that can help you secure your future and reduce your tax burden.

📲 Ready to learn the truth about how life insurance can work for you?

🗓️ Book a life insurance strategy session today:
👉 https://api.leadconnectorhq.com/widget/booking/T4UHUjCijCtIB3rwoTDI

🌐 Read more from the blog:
👉 https://www.thecrgroupllc.com/financial-horizons-insights-for-building-wealth-and-securing-your-legacy

✍️ About the Author

Dr. Jose G. Cardenas, DBA
Chief Tax Strategist, The C & R Group, LLC
Licensed Financial Professional affiliated with Experior Financial Group

⚠️ Disclosure:

This article is for educational and informational purposes only and is not intended to serve as personalized legal or investment advice. Dr. Jose G. Cardenas, DBA, provides tax advisory services through The C & R Group, LLC. Insurance strategies, including Indexed Universal Life (IUL) and annuity products, may be offered through his role as a licensed financial professional affiliated with Experior Financial Group.