5 Myths the AAPI Community Has About Life Insurance – Life Happens

1. Life insurance is not affordable.

Jordan says this is one of the most frequent myths he hears in the AAPI community. According to the 2023 Insurance Barometer Study, Asian Americans cite perceived expenses as the top reason for not having life insurance (37%), followed by other financial priorities (26%).

The good news is that life insurance probably costs less than you think. In fact, most people overestimate their cost by three times or more. As Jordan shares, “By working with an insurance professional, you can look at different providers and rates. Affordable coverage with abundant benefits is cheaper than you think!”

2. I have enough life insurance at work.

According to the same study, Asian Americans are more likely (29 percent) than other races and ethnic groups to say, “I have life insurance through my job and I think it’s enough for me.” While life insurance through your job is a great benefit, it’s usually not enough coverage.

Many people with life insurance through work have a group term policy that provides one or two times their salary. Jordan tells her clients that depending on how much financial support their family may need, this is often not enough.

Think of all the expenses your family would have to continue to cover after you die: bills, mortgage payments, child care, debt, retirement. Adds. How far would your job coverage really go once you calculate those costs?

“Another important thing to ask yourself,” Jordan says, “is, ‘What happens to your life insurance policy at work if you don’t work there anymore?’” An individual life insurance policy ensures you keep your coverage no matter where you work.

3. me you have to die to use a life insurance policy.

Jordan says many of his clients don’t know how life insurance could benefit them while they’re still alive. The data supports this: Asian Americans are more likely (34 percent) to say they cannot personally benefit from life insurance compared to other groups.

Jordan is quick to educate them on how life insurance policies have gone through several evolutions, one of the most important being living benefits. This means that you can potentially access your life insurance policy if you become sick or injured while you are still alive. Plus, permanent life insurance can be designed so that the policy’s cash value can fund supplemental retirement income, pay for college, buy a home, and more.

4. I have savings, so I don’t need life insurance.

Interestingly, Asian Americans are the least likely of all groups to say saving money for an emergency fund (29 percent) or paying monthly bills (24 percent) are their top financial concerns. It is clear that the AAPI community values ​​savings. And yet, what about your plans for those savings (retirement, generational inheritance, etc.) if your family has to use it all to cover expenses when you die?

As Jordan says, “The purpose of life insurance is to pay a benefit in the event of an unexpected life event. Just like car insurance, you’re paying a premium for the insurance company to pay a benefit if an unexpected qualifying event occurs, so you don’t have to use your hard-earned savings.”

5. I am too young for life insurance.

Since life insurance premiums are calculated based on your risk of dying, it’s generally more affordable the younger and healthier you are. That means premiums may increase the longer you wait! Lock in your rate now before any health issues surprise you later.

Working with an insurance professional like Jordan is a great way to learn more and get covered. Check out our helpful information on choosing a qualified insurance professional. Then use our Agent Locator to find one in your area.