16 Sep Myths: Life Insurance Cost

Did you know that 106 million adults in the U.S. are uninsured or underinsured? When it comes to life insurance, there are many myths that people are often convinced by, which may deter them from purchasing their own policy and gaining protection. Let’s dispel some myths and share facts about life insurance, including its cost and other aspects. This information will help you gain a clear understanding of a crucial matter: providing financial security for your loved ones in the event of your death.

Myth 1: You Only Need Life Insurance When You’re Older

Truth: Life insurance tends to be less expensive when you’re young and healthy. Here are some surprising facts:

• 4 out of 10 people wish they had purchased a life insurance policy when they were younger.

Myth 2: You Only Need Life Insurance If You Have Children

Truth: Life insurance is valuable for anyone with financial obligations or dependents. Consider this:

• 36% of millennials with a joint mortgage and no life insurance report that their partner couldn’t afford the mortgage alone if they died.

Myth 3: Life Insurance Is Very Expensive

Truth: Many people overestimate the cost of life insurance. Let’s look at the facts:

• The 2019 Insurance Barometer study found consumers overestimated the cost of a $250,000 term life policy for a healthy 30-year-old by three times its actual cost.
• The average cost of term life insurance for a healthy 30-year-old is around $170 per year.

Myth 4: Employer-Provided Life Insurance Is Sufficient

Truth: While employer-provided life insurance is a great benefit, it may not be enough:

• The maximum coverage through your employer’s plan may be less than the amount you actually need.
• Employer-provided insurance typically doesn’t follow you if you change jobs.

Secure Your Future Today

Don’t let misconceptions prevent you from protecting your loved ones. Here’s what you can do:

1. 1. Assess your current financial situation and future needs.
   2. Research different types of life insurance policies.
   3. Get quotes from reputable insurance providers.
   4. Consult with an expert for personalized advice.

Understanding life insurance doesn’t have to be complicated. Reach out to one of our highly experienced expert risk advisors to guide you through the first steps in obtaining life insurance. Your future self (and your loved ones) will thank you!

To better prepare for the school year, contact one of our talented Risk Advisors today!

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