Term Insurance
2026-10-27 5 Min read
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Some of the reasons sound perfectly sensible on the surface. The trouble is, many of them are based on ideas about insurance that are not quite accurate, and they end up delaying a decision that would have been easy to make earlier. Here are five of the most common ones, and a simple, honest look at each.
Myth 1: It's only useful after I'm gone
This is probably the most common misunderstanding, and it is easy to see why. Life insurance is often talked about only in the context of what happens after someone passes away. But plenty of plans also do something for you while you are very much alive, such as building savings you can use later, or including benefits that support you if you are diagnosed with a serious illness.
Insurance is not only about providing for others when you are gone. Many plans are also part of building your own financial future.
Insurance is not only about providing for others when you are gone. Many plans are also part of building your own financial future.
Myth 2: I'm too young to think about this
It feels natural to assume insurance is something for later, once you are older and have more responsibilities. In reality, age works in your favour when you are young. Premiums are generally lower when you are younger and in good health and buying early means you lock in that lower cost for a long time due to lower risk.
Waiting does not make the decision easier. It usually just makes it more expensive.
Waiting does not make the decision easier. It usually just makes it more expensive.
Myth 3: My employer's cover is enough
Group cover through your employer is a good benefit, and it is worth using while you have it. But it comes with a catch that is easy to overlook. It usually ends the day you leave that job, whether by choice or otherwise. It is also not owned by you, which means you have limited say over its terms.
Treating employer cover as a helpful addition, rather than your entire safety net, is a more reliable way to think about it.
Treating employer cover as a helpful addition, rather than your entire safety net, is a more reliable way to think about it.
Myth 4: It's too complicated to understand
Insurance does come with its own vocabulary, and that can feel intimidating from the outside. The good news is that most policies really come down to a handful of simple ideas: how much cover you have, how long it lasts, what you pay for it, and who receives the benefit.
Once you understand these basics, most of the rest is detail rather than complexity. It is always worth asking questions until something makes sense, rather than assuming it is beyond you.
Once you understand these basics, most of the rest is detail rather than complexity. It is always worth asking questions until something makes sense, rather than assuming it is beyond you.
Myth 5: I'll do it next year
This is less a myth about insurance and more a myth about time. Next year rarely feels more convenient than this year, and life has a way of adding new responsibilities rather than removing them.
The earlier you begin, the more choices you keep open for yourself, simply because your health and your age are both working in your favour right now. There is no need to rush into a decision, but there is also little reason to keep pushing it further away.
The earlier you begin, the more choices you keep open for yourself, simply because your health and your age are both working in your favour right now. There is no need to rush into a decision, but there is also little reason to keep pushing it further away.