Breaking the Myths: What People Get Wrong About Life Insurance
September 4, 2025
September marks the start of financial planning season, and that also means Life Insurance Awareness Month. With summer waning and crisp autumn winds just around the corner, it’s time to rethink both your wardrobe and any outdated assumptions about life insurance.
Many of us grow up thinking life insurance is just a simple financial product. But life insurance can be so much more than that. It’s better described as a valuable wealth-building resource that serves to protect the people that matter to you most.
Here, we break down some of the most common misconceptions about life insurance.
Myth #1: “I’m Too Young to Need Life Insurance”
The reality is, no matter your age, you’re never too young to take advantage of life insurance. For starters, life insurance is often more affordable and flexible when purchased in your youth, when you can secure lasting eligibility at the lowest possible rates.
Early planning is especially valuable if you tie life insurance to important milestones, like getting married, starting a family, or buying your first home. Knowing that your loved ones will be taken care of without financial strain, no matter what, is sure to bring peace of mind. The same holds true for entrepreneurs who want their business partner to be able to continue the company without them.
Myth #2: “It’s Too Expensive”
For many people, life insurance just feels expensive. The truth is, it probably costs less than you think.
According to the Life Insurance Marketing and Research Association (LIMRA), 72% of Americans overestimate the cost of life insurance. In fact, 54% of respondents told LIMRA this perceived cost was based on a “gut instinct” or “wild guess.” As a result, far too many adults overlook term life insurance as a truly affordable option.
Myth #3: “My Employer Coverage Is Enough”
It’s great that so many employers offer group life insurance to their employees. Unfortunately, these plans max out at low payouts that amount to only once or twice your yearly salary. In addition, these plans, while convenient, aren’t portable policies — so if you change jobs or are laid off, most likely you cannot take the policy with you.
It’s always a good idea to assess how much money your family would actually need if something were to happen to you. Supplementing with term life insurance, from a trusted provider such as 1891 Financial Life, can be a good way to fill in the gap.
Myth #4: “It’s Just for Burial Expenses”
While it’s true that some people think of life insurance as just a small payout to cover final costs, the best policies secure so much more. They can replace income, pay off debts, help with education planning, and leave behind the kind of charitable legacy you’ve only dreamed of. Life insurance offers financial protection in a volatile world.
A Gift of Love
Life insurance is the ultimate gift of love. It promises financial protection for your partner, your children, and those you love most, even after you’re gone.
So this September, as you pack away the summer clothes and dust off the boots and sweaters, remember to revisit your ideas about life insurance, too. The best time is always now, before a need arises.
At 1891 Financial Life, we specialize in providing tailored insurance solutions that cater to diverse needs. Our team is equipped to help you navigate these challenges with expertise and compassion. Contact us today for personalized assistance and to explore your options.
About 1891 Financial Life
Our culture is about looking out — for you, for others, for family, for the community. That is how we go “Beyond Life Insurance.”
At 1891 Financial Life, we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs. In 2023, 1891 Financial Life was listed by Forbes as one of “The World’s Best Life Insurance Companies.”
Our portfolio is extensive, ranging from various life insurance policies to our annuities to support your financial needs no matter what stage of life you’re in.