The Truth About Life Insurance: 8 Common Myths Debunked

1. Myth: Life insurance is too expensive.

Fact: A policy is more affordable than you may think.

According to data from the 2025 LIMRA Insurance Barometer Study, most people tend to overestimate the cost of a life insurance policy by nearly 10 times the actual cost. The same study showed that this misconception is the main reason many hesitate to purchase a policy.

Life insurance can provide financial protection for your loved ones. Research shows it takes 12 months or less for family members to feel the financial impact of losing a loved one.

You and your family will benefit from learning about your options and the simple steps it takes to secure a policy that best suits your needs. See how affordable life insurance can be by getting a free quote online today.

Quick tip: If cost is one reason you’ve delayed coverage, learning a few core life insurance facts can make the decision feel more manageable.

2. Myth: I don’t have kids now, so I don’t need life insurance.

Fact: Life insurance is important, even if you don’t have children.

If you don’t have kids, you still may want to get life insurance, especially if you’re married, in a partnership or taking care of aging parents. In fact, the main reason adults 25 to 34 start shopping for life insurance is because they got married. If you have kids later, you can update your coverage to ensure you have enough.

Life insurance can help your loved ones cover bills – such as a mortgage – pay off debts and maintain their standard of living after you pass. With the median monthly mortgage payment at $975, it’s easy to see why you should make room for life insurance.

Quick tip: If you’re unsure whether coverage makes sense for your situation, it can help to think through who depends on you financially.

3. Myth: I’m young and healthy, so I don’t need life insurance.

Fact: It’s wise to get life insurance when you’re young. Plus, it could save you money.

One of the best times in your life to buy life insurance is when you’re young and healthy. Here’s why: Life insurance policies can be less expensive at that time. If you buy a policy now, you can save money in the long run because the cost of life insurance increases as you get older. If you’re planning to get married and have children in the future, it makes sense to lock in your rate while you’re young and healthy.

Locking in coverage today is a great way to care for the people who may depend on you financially in the future.

Quick tip: One truth about life insurance is that waiting can limit your options. Buying when you’re younger and healthier may help you get lower premiums.

4. Myth: As a stay-at-home parent, I don’t need life insurance.

Fact: The loss of a stay-at-home parent could have significant financial impacts.

According to 2020 data from Salary.com, the value of the work done by an average stay-at-home parent is $178,201. Many families could not afford to hire someone to help with all of the tasks a stay-at-home parent performs.

Some of these tasks may include:

• Child care
• Food preparation
• Yardwork
• Tutoring and homework help
• Cleaning
• Transportation and carpooling

Quick tip: A stay-at-home parent’s work has monetary value even though it doesn’t come with a traditional paycheck. Without life insurance, your family might be left without the resources to provide for these child care services in the event of your passing. That’s where life insurance can help play a role to financially protect your family and allow your children to maintain the same quality of life.

5. Myth: Most Americans with coverage have enough life insurance.

Fact: Many people are underinsured, and they have no idea.

The American Council of Life Insurers notes that most Americans should have life insurance equal to seven to 10 times their annual salary. Many people may not have that kind of coverage. Here are a few reasons why:

• You only have life insurance through your employer, which may not cover all of your financial needs if you pass away.
• You had children but never adjusted your life insurance policy.

Remember, you may need enough life insurance to:

• Pay for a mortgage
• Provide for a spouse or partner, children and aging parents
• Protect your income and cover daily costs
• Cover the cost of a funeral, and burial or cremation

It’s always a good idea to check your policy and discuss with a life insurer your current coverage needs.

Beliefs vs. facts

6. Myth: It’s tough to know how much life insurance I need.

Fact: An insurance professional can help you understand coverage.

It’s important to have a life insurance policy in place to protect your family. When you’re ready to get a policy, an insurance professional can help you understand how much insurance you may need and walk you through the steps to take.

You’ll want to discuss several important factors that help determine the coverage you need, including:

• Your income and how much would need to be replaced
• Major debts, such as a mortgage
• Childcare, education and household expenses
• Family members who depend on you financially
• Final expenses

The list above is not meant to be exhaustive, as everyone has different needs to consider when determining the right amount of life insurance. When you speak to an Amica insurance representative, they can help recommend the right amount of coverage for your unique situation.

Need more info? You can also explore how much life insurance you might need if you’re still deciding which type of policy may fit your goals.

7. Myth: I don’t need life insurance if my children are grown.

Fact: If you’re an empty nester, you may still need life insurance.

As your children leave home, your financial priorities shift, but there may still be a need for life insurance.

Whether you are supporting a young adult finding their footing, providing a safety net for a family member between jobs, or caring for an aging parent, true financial protection safeguards your loved ones right now and in the future. By securing the right coverage, you preserve your hard-earned legacy, protect your family’s long-term security, and create the financial freedom to support the charitable causes closest to your heart.

Not only does life insurance cover the costs of daily expenses and a mortgage, but it can also help pay outstanding debt. According to data from credit bureau Experian, 73% of individuals die with debt, with an average outstanding balance of $61,554. Fortunately, life insurance can help provide financial support for family members who are left to pay off this amount.

Did you know? 40% of empty nesters still help their adult children pay for expenses. Plus, 60% of them expect their children to move back home at some point.

8. Myth: I have life insurance through my employer, so my family is already covered.

Fact: You shouldn’t rely solely on employer-based life insurance.

More than half of employers offer life insurance benefits to help attract and retain top employees. Even though group life insurance is an excellent benefit, it shouldn’t be your only form of coverage. Here’s why:

• It’s probably not enough coverage. Generally, life insurance that’s at least seven to 10 times your annual salary is suggested. Meanwhile, the average group life policy only covers up to $100,000, which is the recommended amount for someone earning only $10,000 a year.
• You may lose coverage if you change jobs. Most group life insurance policies end if you leave your job. If you decide to convert your policy to an individual policy (in order to take it with you), then it may significantly increase in price.
• Your options are limited. Generally speaking, most group life insurance policies offer less coverage than individual policies. To get a policy that will truly protect your family, it’s best to seek additional coverage on your own to supplement your group policy.

First, take a close look at your group policy coverage and determine what you’re intending it to cover. Do you think it will fully cover your loved ones if you’re no longer there? For most people, the answer is no. If you only have a group policy, take time to secure additional coverage. You won’t regret adding another layer of protection.

Need more info? Take a closer look at how workplace coverage compares with personal coverage.

Looking beyond common life insurance myths

Life insurance decisions are often influenced by assumptions about cost, coverage and who needs a policy. Taking time to understand the facts can help you evaluate your options with more confidence and choose coverage that fits your needs.

An Amica life insurance representative can easily help you understand how much life insurance coverage you may need. Learn more or get a free online quote today.