Life Insurance: A Scam or Set It and Forget It? Here’s the Reality You Need to Know

Let’s talk about something I’ve been hearing a lot lately—two very different mindsets when it comes to life insurance. You may find yourself in one of these categories, or maybe you’ve heard people close to you voice these opinions. Either way, it’s time to clear the air and bring some real clarity.

Mindset #1: "Life Insurance Is a Scam – I Don’t Really Need It."

I’ve heard this time and time again: “Life insurance is just a scam. I’m healthy, I’m young, and I don’t see the point of paying into this right now.”

Sound familiar?

This mindset often stems from a misunderstanding of what life insurance actually does. It’s not about you; it’s about the loved ones you leave behind. If you’re the main breadwinner in your household, what happens to your family if the worst were to happen? Who’s going to cover the rent or mortgage, childcare, or even those day-to-day expenses we don’t think twice about?

Let’s take an example. Imagine your friend, Marcus, who is the sole provider for his wife and two kids. He thought life insurance was unnecessary too—until an unexpected accident changed everything. Suddenly, his family was left without the safety net they needed. The emotional toll of losing him was already heavy, but add the financial burden, and the weight became unbearable.

If you’re in the “life insurance is a scam” camp, here’s what you still need to consider:

1. Unexpected Expenses Are Real: Life happens fast. Medical bills, funeral costs, and even debts like car payments or student loans don’t disappear when you’re gone. Life insurance covers all that, so your family doesn’t have to.

2. Income Replacement Is Critical: If you’re the one keeping the lights on, a life insurance policy ensures your family won’t be left wondering how they’ll survive without your paycheck.

3. Peace of Mind Is Priceless: It’s not about you using the policy—it’s about knowing that, if anything happens, your family will be taken care of. The peace of mind that comes with knowing your loved ones are financially secure is worth it.

Mindset #2: "I Have Life Insurance and Named My Beneficiary—There’s Nothing More I Need to Do."

On the other side, we’ve got people who think, “I’ve got life insurance, named my beneficiary, and now I’m set for life!”

This mindset is common, and while you’re certainly ahead of the game if you’ve got a policy in place, it doesn’t stop there. There’s still work to be done, and this part is crucial.

Picture this: your friend, Tiffany, has a life insurance policy and named her beneficiary years ago when she got married. Fast forward ten years, and her life looks totally different. She’s now divorced, has two kids, and hasn’t thought twice about updating her policy. Now imagine something happens to her. Who’s getting that payout? Yep, the ex-husband. And we all know that’s not what she intended.

Here’s what you still need to do if you think your policy is “set it and forget it”:

1. Update Your Beneficiaries Regularly: Life changes—whether it’s a divorce, a new baby, or a shift in family dynamics. Make sure your policy reflects those changes by reviewing and updating your beneficiaries regularly.

2. Communicate with Your Loved Ones: Have you talked to your beneficiaries? Do they know where your policy documents are? Do they know what steps to take when the time comes? A conversation today could save them a lot of confusion and stress later.

3. Review Your Policy Annually: Don’t assume that because you have a policy, you’re fully covered. Review your coverage annually to make sure it still aligns with your financial situation and your family’s needs. If you’ve bought a new home, had more kids, or gotten a raise, your coverage might need a boost.

Where Do You Stand?

Whether you’re on the “life insurance is a scam” side or the “I’m good, I’ve got it covered” side, there’s always more to consider. Life insurance isn’t a one-size-fits-all situation, and it’s certainly not a “set it and forget it” deal. It’s about being proactive and making sure your family is set up for success, no matter what life throws your way.

Not sure where you stand? Let’s fix that. Click here to schedule a free 15-minute consultation, and let’s make sure your family is truly protected. Whether you’re just starting out or have additional questions, I’m here to guide you every step of the way.

Let’s secure your future together!