September is Life Insurance Awareness Month, which makes it a good time to talk about something most of us would rather not think about.
Life insurance.
For many people, life insurance sits on the financial “I’ll get to it eventually” list. We insure our homes, cars, phones, and sometimes even our vacations — but protecting the income, people, and plans that make all of those things possible can easily get pushed aside.
Often, it isn’t because people don’t care.
It’s because there are a lot of misconceptions about what life insurance costs, who needs it, and what it can actually do.
So, let’s clear up a few of the biggest myths.
Myth #1: “Life insurance is too expensive.”
This may be the most common misconception I hear.
Many people assume meaningful life insurance coverage will add another major expense to their monthly budget. But depending on your age, health, coverage amount, and type of policy, life insurance may be considerably more affordable than you expect.
And waiting can actually make it more expensive.
Life insurance pricing is largely based on your age and health when you apply. Generally, the younger and healthier you are, the more favorable your options may be.
The question isn’t simply, “Can I afford life insurance?” It’s also worth asking: “What would it cost my family if something happened to me and I didn't have it?”
Myth #2: “I have life insurance through work, so I’m covered.”
Employer-provided life insurance is a great benefit — but it isn't always a complete protection strategy.
Many workplace plans provide coverage equal to one or two times your salary. That may sound substantial until you consider what your income may need to support over the next 10, 20, or even 30 years:
- A mortgage
- Everyday household expenses
- Childcare
- College tuition
- Outstanding debts
- Retirement savings for a surviving spouse
- Final expenses
There’s another consideration: your coverage may be tied to your job.
Changing employers, retiring, or experiencing another employment change could affect that coverage.
Your family's financial protection deserves to be evaluated independently of your employee benefits.
Myth #3: “Life insurance is really just a death benefit.”
This is where life insurance is often misunderstood.
At its foundation, life insurance is designed to provide financial protection when someone dies. But depending on the type of policy and how it is structured, certain forms of permanent life insurance may also play a role in a broader financial strategy.
They may offer features designed to help with objectives such as cash-value accumulation, supplemental retirement planning, business succession, estate liquidity, wealth transfer, and legacy planning.
Certain policies may also include or offer riders that provide access to a portion of the death benefit following qualifying chronic, critical, or terminal illnesses.
That doesn't mean every person needs permanent life insurance — or that life insurance should replace traditional investments.
It means the right conversation shouldn't begin with a product.
It should begin with:
“What are we trying to protect or accomplish?”
Myth #4: “Life insurance is really only important when you have young children.”
Young families often have an obvious need for protection, but life insurance can serve different purposes throughout different stages of life.
- A young family may use it primarily for income replacement and mortgage protection.
- A business owner may need coverage to help fund a buy-sell agreement, protect against the loss of a key employee, or support succession planning.
- Someone approaching retirement may consider life insurance as part of a broader wealth-transfer or legacy strategy.
- A high-net-worth family may use carefully structured coverage to help create liquidity and efficiently transfer wealth to future generations.
Your need for life insurance doesn't necessarily disappear as you become more financially successful.
Sometimes, the reason you own it simply changes.
Myth #5: “I’ll get it later.”
This is perhaps the most dangerous misconception because life insurance is one financial tool you cannot always purchase exactly when you decide you want it.
You have to qualify for it.
A change in health can affect your premiums, limit the types of coverage available to you, or potentially make obtaining coverage more difficult.
That's why one of the best times to evaluate life insurance is before you think you urgently need it.
Life changes are also a good reason to review existing coverage.
If you've recently:
- Purchased or upgraded a home
- Gotten married
- Had another child
- Started or purchased a business
- Experienced a significant increase in income
- Taken on additional debt
- Begun thinking seriously about retirement
- Started planning how you want to leave assets to the next generation
…it may be time for a life insurance review.
Life Insurance Isn't About Dying. It's About Protecting What You're Building.
I think this is the most important misconception to change.
Life insurance conversations can feel uncomfortable because they force us to consider something we would rather avoid.
But good planning isn't rooted in fear.
It's rooted in responsibility.
It's knowing that the mortgage can still be paid.
That your children can still pursue the education you envisioned for them.
That your spouse isn't forced to make major financial decisions while grieving.
That the business you spent decades building has a plan for what happens next.
And, eventually, that the wealth you've worked hard to create can become part of something larger than you.
At Threefold Insurance & Legacy Planning, we look at life insurance through three lenses:
Protection. Preservation. Legacy.
Protect what you've built today.
Preserve what you've worked to create.
And thoughtfully plan what you want to leave behind tomorrow.
This September, Ask Yourself One Question
If something happened to me tomorrow, would the people I love have the financial resources to continue the life we've worked so hard to build?
If you're not completely confident in the answer — or if you simply haven't reviewed your coverage in several years — Life Insurance Awareness Month is a great reason to do it.
A life insurance review doesn't mean you need to buy another policy.
Sometimes it confirms you're already well protected.
Sometimes it uncovers a gap.
And sometimes it reveals planning opportunities you didn't know existed.
Either way, knowing is better than wondering.
If you'd like to review your current coverage or explore what a protection and legacy strategy could look like for your family or business, I'd be happy to have that conversation.
Reem Messeih — Founder & Advisor, Threefold Insurance & Legacy Planning.
Protect what matters. Preserve what you've built. Plan the legacy you'll leave behind.