5 Life Insurance Myths That Could Cost Your Family

5 Life Insurance Myths That Could Cost Your Family

Life insurance is one of the simplest and most affordable ways to protect your family’s financial future. Yet, many Americans either go without it or carry too little coverage. Why? Because myths and misconceptions keep people from taking action.

This Life Insurance Awareness Month, let’s set the record straight on five of the most common—and dangerous—life insurance myths.

Myth #1: “Life Insurance Is Too Expensive”

One of the biggest reasons people delay buying life insurance is cost. But surveys show that most Americans overestimate the price by three to four times.

In reality, a healthy 35-year-old can often get a 20-year, $500,000 term policy for less than $30 per month—that’s about the price of a streaming subscription.

Truth: Life insurance is more affordable than most people think, especially if you purchase it while you’re younger and healthier.

Myth #2: “I Have Coverage Through Work, That’s Enough”

Employer-provided coverage is a great benefit, but it usually covers only one or two times your annual salary. That may sound helpful, but it often falls far short of what’s needed to replace income, pay debts, and cover long-term expenses.

Plus, workplace coverage usually ends if you change jobs or retire.

Truth: Treat employer coverage as a bonus—not your only protection.

Myth #3: “I’m Young and Healthy, I Don’t Need It Yet”

Many people think life insurance is something you worry about later in life. But accidents and unexpected illnesses can happen at any age.

The younger and healthier you are, the lower your premiums will be. Waiting means higher costs—and in some cases, you might lose eligibility if health changes occur.

Truth: Buying life insurance early locks in low rates and ensures your family is protected no matter what happens.

Myth #4: “Stay-at-Home Parents Don’t Need Coverage”

Life insurance is often thought of as income replacement—but stay-at-home parents provide tremendous financial value. Childcare, household management, and countless daily responsibilities would be very costly to replace.

Truth: Stay-at-home parents need coverage too, to help the surviving spouse or family manage future care and household needs.

Myth #5: “I Don’t Have Any Debt, So I Don’t Need It”

Even if you’re debt-free, life insurance can provide funds for funeral expenses, ongoing living costs for dependents, and future goals like college tuition.

Truth: Life insurance isn’t just about paying off debt—it’s about ensuring financial security for the people you love.

Final Thoughts

Myths can be dangerous when it comes to financial planning. Believing them could leave your family exposed at the worst possible moment.

This September, take the time to separate fact from fiction. Talk with a licensed professional about your needs, get an accurate quote, and put protection in place while you still can.

Life insurance isn’t about you—it’s about your family’s tomorrow.

🧑‍💼 Written by Brent Meyer, founder of SafeMoney.com. With more than 20 years of hands-on experience in annuities and retirement planning, Brent is committed to helping Americans make informed, confident financial decisions.

Disclaimer: The information in this article is for educational purposes only and should not be considered financial, tax, or legal advice. Life insurance products, features, and benefits vary by state and company. Policy guarantees are subject to the claims-paying ability of the issuing insurer. Consult with a licensed professional before making decisions about coverage.