1. “Life insurance is only for when I pass away.”
Many people are unaware that certain types of life insurance are designed with living benefits and planning features, not just death benefits. Understanding the differences between policy types is key.
2. “All life insurance works the same way.”
Term life, whole life, and cash-value policies serve very different purposes. Without education, people often compare them incorrectly or dismiss options that may fit their goals better.
3. “Life insurance is always expensive.”
Cost varies widely based on the type of policy, structure, and goals. In many cases, there are flexible options that fit different budgets and planning needs.
4. “Taxes aren’t part of the conversation.”
Tax treatment is often misunderstood or overlooked. While life insurance has unique tax considerations, it’s important for clients to understand how policies are treated, not assume outcomes.
5. “Once it’s set up, I never need to review it.”
Life changes, and policies should be reviewed periodically to ensure they still align with goals, family needs, and overall planning priorities.