5 Most Common Myths About Life Insurance—And Why They’re Holding You Back

Financial Horizons: Insights for Building Wealth and Securing Your Legacy

By Dr. Jose G. Cardenas, Chief Tax Strategist at The C & R Group, LLC

When it comes to building wealth and protecting your family’s future, life insurance is often misunderstood—and unfortunately, these misunderstandings can leave your loved ones vulnerable. Let’s break down five of the most common myths about life insurance and set the record straight.

Myth #1: Life Insurance Is Expensive
Reality: The cost of life insurance can be surprisingly affordable—especially when you purchase coverage early. Many people overestimate the monthly premium, assuming it will break their budget. In reality, a healthy individual in their 30s can often secure substantial coverage for less than the cost of a daily coffee habit. More importantly, the peace of mind and financial protection it provides far outweigh the small monthly investment.

Myth #2: You Don’t Need Coverage If You’re Young and Healthy
Reality: Youth and good health are actually your best advantages when buying life insurance. Your age and health status directly affect your premium rates. Locking in coverage while you’re healthy means you’ll pay less for more coverage, and you won’t risk losing eligibility if your health changes later in life.

Myth #3: Insurance Companies Won’t Pay If You Have Health Issues
Reality: While health conditions can affect your premiums and coverage options, having a medical history doesn’t automatically disqualify you. There are specialized policies designed for individuals with pre-existing conditions, and a skilled advisor can help match you with the right plan. The key is full disclosure—hiding health information can create issues at claim time, but honest applications backed by proper policy selection can still result in approved claims.

Myth #4: You Don’t Need It If You’re Single, Without Dependents
Reality: Even if you don’t have children or a spouse, life insurance can protect others from financial burdens—such as covering funeral expenses, outstanding debts, or leaving a financial gift to a loved one or charitable cause. It’s also a smart tool for building cash value over time, which can be leveraged for retirement or other needs.

Myth #5: Employer-Provided Life Insurance Is Enough
Reality: Employer coverage is a nice perk, but it’s rarely sufficient. Most employer plans offer coverage equal to one or two times your annual salary—nowhere near enough to replace years of income or cover major expenses for your family. Plus, your coverage may end if you change jobs. Having your own policy ensures you remain protected no matter where your career takes you.

The Bottom Line
Life insurance isn’t just about death—it’s about life. It’s a proactive financial tool that can protect your loved ones, safeguard your assets, and even help you grow wealth tax-efficiently. Don’t let myths prevent you from securing the protection you and your family deserve.

📖 Read more articles here: www.thecrgroupllc.com/blog
📅 Book a consultation with Dr. Cardenas: Click Here

About the Author
Dr. Jose G. Cardenas is a retired U.S. Army Finance Officer and the Chief Tax Strategist at The C & R Group, LLC. With a Doctorate in Business Administration and over 20 years of experience in financial strategy, tax planning, and life insurance, Dr. Cardenas helps individuals and business owners protect their wealth and build a legacy. Learn more at www.thecrgroupllc.com.

📌 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.