Top 5 Life Insurance Myths Debunked

Life insurance is there to provide financial security for your loved ones if the worst was to happen, but many people delay taking out cover due to common misconceptions, which can prevent them from putting the right protection in place. Below, we explore five common life insurance myths and the truth behind them.

1. “I don’t need it”
   Many people believe life insurance isn’t necessary because they’re young, healthy or single. In reality, serious illness and unexpected death can affect people at any stage of life. In the UK alone, someone is diagnosed with cancer every 90 seconds, and cardiovascular disease, including heart attacks and strokes, still causes around one in four deaths.

   Life insurance isn’t just for later in life, it’s about protecting the people you care about and the financial commitments you already have, such as rent, a mortgage, debts or future family plans. Taking out cover early can also lock in lower monthly payments while you’re young and healthy, offering long-term value and peace of mind if the unexpected happens.

2. “Life insurance doesn’t pay out”
   Some worry that insurance companies won’t honour claims, but life insurance actually pays out the vast majority of valid claims. According to the Association of British Insurers, around 98% of protection insurance claims are paid out overall, so families typically receive the support they expect when they need it most.

   In 2024 alone, LifeSearch customers received over £105million in life, critical illness and income protection claims. Our dedicated claims team supported over 400 of these customers through the process, helping those who needed us, challenging insurer’s decisions and pushing them for faster payouts.

    

3. “Life insurance is too expensive”
   Life insurance comes in a range of options to suit different budgets, and it’s often more affordable than people expect. At LifeSearch, cover can start from as little as around £3–£5 per month for young, healthy non-smokers, with many people paying £10–£30 per month for significant levels of protection. Taking out cover earlier in life usually means lower payments, and even a simple policy can provide financial protection for your loved ones and help cover everyday costs, debts or future plans.

    

4. “My employer’s benefits are enough”
   While workplace life insurance can be helpful, it usually isn’t enough on its own. Coverage may be limited, and often ends if you change jobs. Having a personal policy ensures consistent protection tailored to your circumstances.

    

5. “I can’t get it because I have a pre-existing medical condition”
   Having a medical condition doesn’t automatically rule you out. Many insurers offer cover for people with health conditions, sometimes with adjusted payments or terms. Speaking with a protection adviser can help you find the right policy to suit your needs.

Getting the right cover
Life insurance isn’t one-size-fits-all. Busting these myths is the first step towards making an informed decision. Speaking to one of our LifeSearch advisers can help you find a policy that fits your needs and gives your family the protection they deserve.