Some of the most persistent misconceptions about coverage and retirement income aren’t about pricing or paperwork. They’re about who these tools are even for. Here are the facts behind each myth.

Myth: “I’m single, so I don’t need life insurance.”

Fact: Life insurance isn’t only about replacing a spouse’s lost income. Single people often carry debt (student loans, a car loan, a mortgage) that could fall to a co-signer or family member. Coverage can also fund final expenses, leave a gift to family or a cause you care about, or lock in low rates and insurability now, before a future health change makes coverage harder to get.

Myth: “I’m too old to buy life insurance.”

Fact: Many carriers offer coverage well into a person’s 70s and 80s, particularly through final expense and other simplified or guaranteed-issue products. Premiums are higher at older ages and coverage amounts are typically smaller, but “too old to qualify” is rarely actually true. It’s worth checking real options before assuming the door is closed.

Myth: “Annuities are only for wealthy retirees.”

Fact: Annuities are used across a wide range of savings levels, not just by the very wealthy. In fact, annuities can matter more for retirees who don’t have a pension or a large enough portfolio to comfortably absorb market swings. The guaranteed income floor can be especially valuable when there isn’t a large cushion to fall back on.

Myth: “Annuities are too complicated to understand.”

Fact: Some annuity contracts do have real complexity (caps, participation rates, riders), but the core concept is simple: you trade a lump sum for guaranteed income or growth potential, with specific trade-offs depending on the product. A good explanation of the specific contract you’re considering should make the trade-offs clear before you commit.

Myth: “Once you buy an annuity, your money is locked away forever.”

Fact: Most annuities allow penalty-free withdrawals up to a certain percentage each year, even during the surrender charge period. Full access to the entire balance may be limited during that period, but “locked away forever” isn’t accurate for the vast majority of contracts.

This article is educational and general in nature. It isn’t personalized financial advice. All guarantees are subject to the claims-paying ability of the issuing insurance company.