Four Misconceptions About Life Insurance

09/06/2022 Written by: Jenny Boudreau

Whether or not you get life insurance – and how much – is a personal decision. However, if you have others that depend on you for financial support, life insurance is an affordable way to help those dear to you remain financially stable.

Each September, Life Insurance Awareness month, and the role life insurance plays in protecting families’ financial security is observed. Over the last two years, the global pandemic has highlighted the importance of being prepared for the unexpected. Research by LIMRA reveals that 31% of Americans report being more likely to buy life insurance because of COVID-19.[i]

Despite the increased interest in buying life insurance, millions of Americans live with a life insurance gap. LIMRA research found that 4 in 10 families would face financial hardship within six months if the primary age earner dies, and for 1 in 5, it would be within just one month.[ii]

The 2022 Life Insurance Barometer Study[iii] identified four misconceptions preventing people from buying life insurance.

Misconception 1: Life insurance is too expensive.

The cost of life insurance is often overestimated by as much as threefold. While the cost of life insurance is based on factors such as age, health, gender, and policy type, life insurance probably costs less than you think. On average, a $250,000 term life insurance policy for a 30-year-old costs between $132 to $276 per year.[iv]

Misconception 2: My workplace insurance is enough.

Median workplace life insurance coverage is equivalent to one year’s salary or a flat sum of $20,000.[v] For many, the amount of employer provided life insurance may not be enough to cover expenses like a mortgage. Additionally, if you change jobs, you may lose coverage.

Misconception 3: It’s too difficult to buy life insurance.

Many Americans have put off purchasing coverage because they don’t know what to buy or how much. Working with an experienced insurance advisor can help make sense of the options available.

Misconception 4: I don’t need life insurance until I’m older.

Buying life insurance when you’re younger often costs less. It can also protect your financial future and the financial security of your loved ones – even if you don’t currently have a spouse/partner or dependents.

As we transition through the different stages of life, there are many reasons to consider life insurance. No matter your age or budget, there is a policy for everyone. Don’t let uncertainty prevent you from securing this affordable protection. Contact a financial professional at AssuredPartners Investment Advisors for help finding you coverage that meets your needs and fits your budget.


[ii] Ibid.



[v] U.S. Bureau of Labor Statistics, 2020

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