6 myths about buying life insurance

Fact-checked with HomeInsurance.com

5 min read

How’s this for a sales pitch? “We need to talk about your death.”

Yet, that’s precisely the elephant in the (dead center of) the room that we delicately avoid when we consider buying life insurance.

“They call it life insurance, but it’s really death insurance. After all, you’ll never live to collect,” says Judith Hasenauer, a Chartered Life Underwriter, or CLU, and principal at Blazzard & Hasenauer, PC, a Florida law firm that advises insurance companies. “That’s why it’s often said that life insurance is sold, not bought.”

Perhaps because we are so averse to contemplating our own mortality, certain myths have grown up around life insurance. Myths such as: Life insurance is a good investment. You can’t bargain for a better rate. And, you can always expect full disclosure of commissions.

We invited Tony Steuer, an insurance literacy advocate and the author of “Questions and Answers on Life Insurance,” along with retired life insurance actuary, former Vermont insurance commissioner and Consumer Federation of America expert James H. Hunt to join Hasenauer in playing pinata with these overstuffed life insurance myths.