Top Myths About Wills and Insurance—and Why They’re False

When you’re making plans for Future You, how often do you think, Today’s the day! Gotta go buy all the insurance policies and make a will!

Right. Probably not too often—if ever. We can understand why. There are some false but powerful ideas out there about insurance and estate planning—like I’m too young to need a will, insurance is too expensive, and estate planning is not a big deal. If you fall for them, it’s easy to think you can put off those decisions for the future.

But they’re myths!

Sure, figuring out how wills and insurance work and how to pay for them can be a pain. But the fact is, wills are a must, and there are several kinds of insurance you simply can’t afford to skip—so the sooner you learn the truth about them, the better off you’ll be.

In this article, we’ll debunk some of the most common myths out there about wills and insurance. And it’s not just because we like refuting lies—although (ngl) that’s fun too. The real reason why we’re sharing the truth about wills and insurance is to keep one of these myths from coming back to bite you when you least expect it.

Myth: People Who Are Young or Single Don’t Need a Will

Many people have this idea that you don’t need to think about writing a will until you’re in your 90s and on your way out. After all, if you’re young—and for sure if you’re not yet married—you have decades to figure all that out, right?

But wills aren’t just for old fogies! Think about what a will is: A will is a legal document that describes exactly how you want your assets (like property, bank accounts and even pets) to be handled after you die.

Sure, people who have a lot of assets—or have already started a family—might feel more urgency to make a will. But young and single people also have stuff they’d want their parents, siblings or friends to have. And dying without a will messes with that.

So that’s the first big myth to go: Once you’re 18, you should have a will in place regardless of your marital status.

The truth is, any adult who owns stuff of any kind needs a will because nobody is promised tomorrow—and you don’t want the government deciding who gets your property! Getting this done is one of the most loving things you can do for everyone you care about because it saves them legal hassle and gives them some closure about where your stuff winds up.

Myth: Wills Are Out of My Price Range

You already know you need a will. But you might be thinking, Can I afford one?

The answer is definitely yes. So, let’s knock out the myth of “unaffordable wills.”

The real question is, “Expensive compared to what?” We all have to live within our means, but there are some expenses you make room for today to prevent bigger problems in the future.

Let’s say you’re young and just getting going with the whole get-out-of-debt-and-build-wealth thing. We can for sure relate to a budget-minded bargain hunter. And if that’s you, maybe any expense over $100 has you bouncing before you’ve even read the reviews.

Sure enough, lawyers typically charge a flat fee of $300 to $1,000 to make a will, or from $200 to $350 per hour if they’re billing you that way. Ouch! There goes your restaurant budget for the next few months.

But what if you could get a will done for way cheaper online? (Hint: You can!)

 Do you have the right insurance coverage? You could be saving hundreds! Connect with an insurance pro today!

And unlike those oh-so-romantic nights out with your honey that you sometimes splurge on (but really need to rein in), the return on investment on a will lasts your whole life.

Whatever your monthly date night budget looks like, wouldn’t it be worth skipping it for a month or two to protect yourself and those you love most? That kind of commitment is just as romantic as a dinner out—maybe more.

To bust this myth wide open, get this: You can create your own will for way less than an attorney would charge. We recommend working with our partners at Mama Bear Legal Forms to get your will done online.

Their wills are just as legit as any fancy attorney-made document. And Mama Bear has been helping all kinds of people—young and old, married and single—get a will in place for years. Their services will cover all will-related needs for 90% of people.

Myth: busted.

Myth: Identity Theft Is Overhyped

This one is pretty easy to refute with a quick look at the stats.

• Americans lost a total of $23 billion to identity theft in 2023.
• In the same year, 15 million people suffered some form of identity fraud.
• Total ID theft financial losses rose 13% year over year.¹

That’s not hype. That’s heists. And a whole lot of headaches for the poor victims.

It doesn’t have to be this way. First, if you’ve already had your identity stolen, there are steps you can take to get things back in order. Even better, before any ID theft even happens, head it off by getting yourself some ID theft protection. We recommend working with our friends at Zander for monitoring, alerts and recovery if anything happens to your personal information or identity.

Myth: ID Theft Protection Is Out of My Price Range

Fake news!

If we’ve convinced you ID theft protection is a must-have, but you’re still worried about the cost, let’s bust that myth too. ID theft protection is one of the most affordable forms of protection we recommend for everyone.

• Individual coverage averages anywhere from $10 to $40 per month.
• Family plans can range from $13 to $60 monthly.

When you consider the stats we mentioned that show ID theft is on the rise along with the cost for recovery, those prices are even more reasonable. This kind of coverage is essential and affordable!

If you’re ready to protect your identity and your money, our RamseyTrusted partners are ready to serve you. (Their rates are even lower than the averages we listed above!)

Myth: You Don’t Need a Homeowners Policy if You Can Replace Your Home With Cash

First, we want to say, if you are in a position to rebuild your home with cash after a total loss, congratulations! Having that much in savings can only come from some serious wealth building and diligence. Nice work.

But that raises a question: Why would you want to empty out your hard-earned savings when you could very inexpensively buy insurance and save yourself from so much risk?

No matter how much you have in the bank, it’s always cheaper to buy a policy and pay premiums than to replace a total home loss out of your own pocket. In fact, in many cases, wealthier homeowners might require more (or more specialized) coverage than your average suburb dweller.

Here are a few reasons homeowners coverage is so important, regardless of how much money you have saved:

• Homeowners insurance isn’t just about replacing the building on a property. Policies replace the stuff inside too. And the more stuff you have, the more crucial it is for you to be covered.
• The cost to rebuild or repair a property after a fire or storm damage could be far more than anyone wants to shell out, no matter how much cash you’re sitting on.
• Paying for injuries that happen on your property could set you way back, but liability protection from your homeowners policy would make a huge difference.
• Similarly, wealthy people are sometimes targeted by sue-happy shysters who want to cash in with a baseless lawsuit. That includes suits for things they’ll say happened at your home. A homeowners policy could help you defend against them.

This list shows that the whole “I’m good, I’ll just skip homeowners insurance” attitude is a gigantic myth—even if you’re rolling in the dough.

Myth: My Employer Already Provides Me With Life Insurance, so I Don’t Need Anything Else

Everyone loves employee benefits. And sometimes employers throw in some group coverage life insurance. So if you have it, doesn’t that mean you can cross life insurance off your list of insurance needs?

Not so fast. That’s another insurance myth. How come?

Because group life insurance is almost never enough to replace your income for your family in the long term. Usually it only replaces about a year or two of your salary.

To be sure your family is protected if the unthinkable ever happens, you need enough term life coverage for a payout that’s 10–12 times your annual income.

Hey, we love free gifts. And a benefit that covers a year or two of salary is nothing to sneeze at! But it won’t be enough to take care of the people you love well into the future when you’re gone. Thankfully, term life is super affordable. Don’t let that wonderful group insurance lull you into leaving this crucial coverage off your list.

Myth: Health Insurance Is Too Expensive for Me to Buy Any Right Now

This might be one of the most devastating myths you can buy into!

Yes. It is true that health insurance rates are high, and they seem to go up every year.

However, buying health insurance is still nowhere near as expensive as facing a mountain of hospital and medical bills without any coverage to help you pay them! Unpaid medical bills are  bankrupting millions of Americans.²

Look, we know you might think you’re too young, too healthy or maybe too cash-strapped to justify buying health insurance. Trust us, it’s a big ol’ myth—one you need to bust as soon as possible while getting yourself the best coverage you can afford.

Get the Coverages You Need

There now. All the myths are out of the way, and you’re armed with all kinds of exciting new truth about wills and insurance!

But maybe you’re still wondering exactly which coverages you need?

We’ve got just the thing! It’s called the Coverage Checkup. Take it now for your results and see if there’s any other coverage you need to add.