Life insurance is one of the top misunderstood financial products — yet this insurance coverage is one of the most important tools for protecting your family’s financial future. Many people put off buying life insurance due to myths that are simply not true. Below, we break down the top misconceptions and explain the facts behind them.
1. “Life Insurance Coverage is Too Expensive.”
One of the most common myths is that many people assume life insurance costs more than they can afford. This misconception leads many individuals to delay or skip coverage altogether.
The truth: Research shows that most consumers significantly overestimate the cost of life insurance. According to a Kiplinger article, most people think life insurance is more expensive than it really is, and many overestimate the cost by a wide margin.
2. “I Don’t Need Life Insurance Coverage Until I’m Older.”
Another common belief is that you can wait until you’re older, married, or have children before you start considering life insurance.
The truth: Buying life insurance early, while you’re young and healthy, helps secure lower premiums for decades. If you wait until later, this can lead to significantly higher costs or even denial of coverage due to health issues. So, the younger you start with life insurance, the better it is for you and your coverage.
3. “Employer-Provided Life Insurance Is Enough.”
Many believe that employer-provided life insurance is all you need.
The reality: Employer-sponsored life insurance may offer only limited coverage — often just one or two times your annual salary — which may not be adequate for your family’s long-term financial needs. Kiplinger points out that group policies are typically not enough to cover liabilities, income replacement, and expenses over time.
Similarly, Nasdaq highlights that relying solely on employer coverage could leave beneficiaries unprotected because workplace policies rarely match actual financial needs.
In Conclusion
Life insurance is too often postponed or ignored due to common myths about cost, timing, and coverage. The facts tell a different story: life insurance can be affordable, and is often most cost-effective when bought earlier in life.
Taking time to understand these misconceptions — and gathering accurate information — can make a big difference for your family’s financial security.
Life Insurance Questions?
We hope that this information on insurance coverage is useful to you.
If you’d like to learn how we can help you plan your retirement, call Empower Brokerage at (888) 539-1633 to speak to one of our Life and Annuity experts or leave a comment down below.
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