There are a lot of myths out there about life insurance, and you’ve most likely heard at least one of them. The fact is life insurance can be an important part of your financial plan. Although it’s often overlooked and misunderstood, our goal is to help you understand why life insurance is so important. Here are four of the most common misconceptions.

• Protection for your family’s financial future 
  Term life insurance can give you the comfort of knowing you have death benefit protection for a specific period of time. It can help your family replace your income to cover expenses that would be passed on to them in the event of your death.

• Permanent life insurance has living benefits

  Permanent life insurance not only provides a death benefit when you’re gone but has the 
 potential to grow cash value, giving you a source of supplemental income that you can use for anything you like.

• Did life change? So should your life insurance

  Your life insurance needs may change over time. Check in with a financial professional each year to help determine if your coverage is still aligned with your goals. You may even be able to expand your coverage while lowering your payments.

• Minimal hassle, maximum protection
  Apply online at your own pace using your phone, tablet, or laptop. Or, your trusted financial professional can guide you through the application process.

• Convenient underwriting interviews

  The next step is the underwriting interview, which can be completed online at a time that’s convenient for you. If you have any questions, you can always reach out to your financial professional.

• More people are insurable than ever before

  In many cases, you won’t need a medical exam* to qualify for coverage! Most medical information can be obtained electronically. Even if you haven’t been approved for life insurance in the past due to health challenges, it’s worth checking again.

• Access additional cash for life’s big moments
  Need funds for an unexpected expense? You can access the cash value of life insurance to help with these costs. Life insurance can also help when life throws you a curveball, such as unexpected home repairs or medical bills.

• Supplement your retirement income
  Use the cash value in your life insurance policy to help supplement your retirement income and provide additional financial flexibility. Keep in mind that outstanding loans and withdrawals will reduce policy cash values and the death benefit and may have tax consequences.

• Protection from the cost of health challenges

  Some life insurance policies offer added benefits that can provide financial support if you’re diagnosed with a chronic or terminal illness where you can “accelerate” (or use) part of the death benefit.¹ This can help alleviate the stress of medical bills and lost income, taking the strain off your family and allowing you to focus on your health.

• Maintain your family’s lifestyle and dreams
  Life insurance can help replace your income, allowing your family to cover household expenses and continue building the future you planned. It’s like saying, “I’ve got your back, no matter what."

• Help your family build a stronger financial future
  The death benefit from your life insurance policy can help ensure you leave a financial legacy for future generations. Your family can use the death benefit to pay any expenses including estate taxes, which means you can enhance the legacy you’ve worked hard to build.

• Think of life insurance as your legacy
  The potentially tax-free death benefit can help provide greater financial security for your family if you’re no longer there to care for them yourself. It’s another way to express your love for them.

Shortcomings of a policy through work

The median life insurance coverage offered at the workplace is a flat sum of $20,000 or one-year's salary.²  But what will your family do in year two?  Talk to your financial professional about how to customize a policy for your needs.

^©2025 Prudential Financial, Inc. and its related entities.

Our policies contain exclusions, limitations, reductions in benefits, and terms for keeping them in force. A financial professional can provide you with costs and complete details.

Investment and insurance products are:

• Not FDIC insured
• Not insured by any federal government agency
• Not a deposit or other obligation of, or guaranteed by, any bank or its affiliates
• Subject to investment risks, including possible loss of the principal amount invested

* Issuance of the policy will depend upon the answers to the health questions set forth in the application and third-party data.

¹ Receiving benefits under the terms of this feature (rider) will reduce and may eliminate the death benefit for your beneficiaries. It is not Long-Term Care (LTC) insurance, and it is not intended to replace LTC. Additional premiums, underwriting requirements, and limits may also apply.
² 2024 Insurance Barometer Study, LIMRA and Life Happens.

Black Enterprise is being paid $250,000 as part of its arrangement with Prudential Financial. Black Enterprise’s receipt of this compensation from Prudential creates a conflict of interest because of the financial incentive to promote Prudential. Black Enterprise and Alfred Edmonds, an associate of Black Enterprise, are not affiliated with Prudential and are not authorized or licensed to provide investment advice on behalf of Prudential.
Our policies contain exclusions, limitations, reductions in benefits, and terms for keeping them in force. A financial professional can provide you with costs and complete details.


Disclaimer


The Prudential Insurance Company of America, Newark, NJ. This material is being provided for informational or educational purposes only and does not take into account the investment objectives or financial situation of any client or prospective clients. The information is not intended as investment advice and is not a recommendation about managing or investing your retirement savings. If you would like information about your particular investment needs, please contact a financial professional. 


©2025 Prudential Financial, Inc. and its related entities. Prudential, PGIM, the Prudential logo, and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.

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