Life Insurance Awareness Month is the perfect time to tackle one of the biggest barriers keeping families from getting the coverage they need: misinformation. Myths and misconceptions around life insurance are everywhere—and they prevent people from protecting what matters most. Let’s break down some of the most common myths and uncover the reality behind them.
Myth 1: Life insurance is too expensive.
Reality: Most people drastically overestimate the cost of life insurance. According to LIMRA’s 2024 Barometer Report, consumers think coverage costs nearly three times more than it actually does. In fact, a healthy 30-year-old can secure a 20-year, $250,000 term policy for around $16 a month (Forbes, 2024). That’s less than many spend on streaming subscriptions.
Takeaway: Life insurance is often more affordable than people assume, and positioning it against everyday expenses makes the value clear.
Myth 2: I don’t need life insurance because I’m single or young.
Reality: Life insurance isn’t just for parents or married couples. Young professionals often have student loans, credit card debt, or co-signed obligations that can fall on loved ones. Plus, buying a policy early locks in lower premiums for life—an advantage that disappears with age or health changes.
Takeaway: Advisors should highlight the long-term cost savings and financial responsibility benefits for younger clients, even if they don’t yet have dependents.
Myth 2: “Only the breadwinner needs coverage.”
Reality: Unpaid caregiving has serious economic value. Salary.com’s “Mom Salary” analysis pegs the imputed value of a stay-at-home parent’s work around the six-figure mark in recent reports (e.g., $184,820 in a recent write-up). Even without a paycheck, losing that role creates major, immediate costs for a family.
Takeaway: Help households think beyond W-2 income. If a caregiver were gone tomorrow, who covers childcare, transport, meals, and household management—and at what cost?
Myth 3: “My employer coverage is enough.”
Reality: Group life typically equals 1–2× salary and often isn’t portable. That rarely covers income replacement, debts, childcare, or college funding—especially after a job change.
Takeaway: Position workplace coverage as a starter layer. An individually owned policy provides the stable, portable backbone most families actually need.
Myth 4: “Life insurance is only a death benefit.”
Reality: Modern policies can include living benefits (e.g., chronic/critical illness riders) and some designs can build cash value for flexibility.
Takeaway: Reframe from “just protection” to “multi-purpose planning tool” that supports both today and tomorrow.
Myth 5: “I can get coverage later, so there’s no rush.”
Reality: Waiting to buy life insurance is risky. Life changes—health issues, new debts, marriage, or kids—can make coverage more expensive or even unattainable. According to Forbes, premiums rise with age and any new health conditions can limit options.
Takeaway: Encourage clients to secure coverage sooner rather than later. Locking in a policy today protects them against future cost increases and unforeseen health challenges.
Bringing It All Together
Life insurance isn’t about fear—it’s about financial confidence. The truth is, coverage is affordable, valuable for families of all income levels, and most effective when purchased early.
For more resources to help you share these truths with clients, check out the IAMS 2025 LIAM Sales Kit. It includes customizable flyers, social posts, and conversation guides designed to help you educate and connect with prospects this month.
