Common Misconceptions about Life Insurance

(Photo © Piotrekswat / iStock via Getty Images Plus)
(Photo © Piotrekswat / iStock via Getty Images Plus)

With the cost of most goods and services on the rise, straining many household budgets, families are likely looking for ways to cut expenses. But it’s important to make wise decisions before cutting, as some expenses are worth more than they cost and can provide a lifetime of benefits.

Life insurance is one example. While often viewed as just a cost, life insurance is an investment in your family’s wellbeing. Unfortunately, too many people don’t have any life insurance or don’t have enough because they don’t have all the facts. That’s why Erie Insurance wants to address some of the more common misconceptions about coverage.

1. It’s too expensive.

Many people believe life insurance is a monthly payment comparable to a car or house payment. In reality, the average cost of life insurance (depending on individual situations) is $14 a month, according to Erie Insurance. Giving up one restaurant meal a month can help set your family up for financial stability for years. To roughly calculate how much life insurance would cost to cover your family’s needs, check out Erie Insurance’s life insurance coverage calculator.

2. Stay-at-home and single parents don’t need it.

If you’re a stay-at-home or single parent, life insurance might seem like an unnecessary expense. Yet, if you or your spouse are gone, someone will need to provide childcare and cover other expenses for your children. Life insurance could take away the burden of figuring out how to afford childcare as you or someone else adjusts and assimilates to a huge life change.

3. It is only beneficial after you die.

Although life insurance is typically used for after-death support, some policies allow you to tap into your benefits for certain reasons while you are alive. For example, with some terminal or chronic illnesses, your policy may pay out a certain amount to support medical expenses. With some policies, you can also use your life insurance to support long-term care. To learn more about pre-death life insurance benefits, contact your insurance agent.

4. My employer already covers me, so I’m set.

Even though many employers offer life insurance plans, those plans tend to be limited in their coverage and options. Also, most employer-sponsored coverage disappears after you leave that job. Adding an additional policy allows you to have more security in the event you were to pass away. To calculate how much life insurance you need to sufficiently cover your loved ones, visit

5. I’m too young to worry about life insurance.

When you are young, the last thing you want to do is think about death and dying. However, life insurance premiums tend to be cheaper the younger you are. Plus, having life insurance while paying off debts — especially if you have a cosigner — gives extra security to your cosigner in the unfortunate event you were to pass away.

Life insurance is designed to support your loved ones should something happen to you. Show them you really care about their long-term welfare. Talk to your agent today about adding a policy that fits your needs.