Myths about term protection

In this article, we will look at some of the common myths around term protection and how to plan for the best possible outcome.

Myth 1: “I’m young and healthy, I don’t need it yet”

When you are young and healthy, with your whole life ahead of you, optimism is a good thing. The aim is not to make you worry about your mortality, but there is value in understanding optimism bias, our natural tendency to believe we are less likely to experience negative events than others.

It is why people buy lottery tickets despite knowing the odds. When it comes to term protection, this same bias can lead us to avoid thinking about what could go wrong.

The reality is that a car accident or serious illness can happen to anyone. Insurance is best arranged before it is needed. When you are young and healthy, cover is typically easier to obtain and more affordable.

Taking out a policy early also means benefiting from stronger insurability, which is reflected in the premium over time.

Myth 2: “I have mortgage protection”

Having mortgage protection in place when you buy a home is extremely important. It helps clear the debt if a mortgage holder passes away before the loan is fully repaid. This is a good thing.

However, it does not guarantee that your family can maintain their lifestyle unless additional cover is in place to meet day-to-day living costs. In some cases, this could mean having to sell the home or downsize to manage essentials such as utilities, groceries, and education costs.

While mortgage protection clears a debt, term protection is designed to protect a life.

Myth 3: “I can’t afford it”

The rising cost of living is putting real pressure on many households. As a result, people are increasingly reviewing their budgets and deciding what is essential and what is not.

Term protection is optional. Unlike mortgage protection, there is no legal requirement to get it. However, that does not mean it is not essential.

In fact, when budgets are tight, the financial impact of losing an income can be even greater. Protecting that income, and in turn your household budget, becomes even more important.

A common reason people give for not taking out term protection is the belief that it is too expensive. In many cases, this is not the case. For example, a 30‑year‑old could take out €200,000 of life cover over a 20‑year term for as little as €13.93 per month with Zurich₁.

That said, getting personalised advice on how much cover you actually need is key to making sure you have the right protection in place.

Myth 4: “I’ll do this later”

This is a common reason people give for delaying term protection. Life is busy, and while some things are prioritised, others get pushed down the list.

The challenge is that putting term protection in place rarely feels urgent. There is always something more immediate competing for your attention. But later can easily become never, and circumstances, including your health, can change unexpectedly.

There is a well-known saying that life insurance is better bought ten years too early than a minute too late, and it holds true. The opportunity to put cover in place on favourable terms is not something that is guaranteed forever.

When it comes to protection, doing this “later” can become the most expensive decision you can make.

Myth 5: “Nothing will happen to me”

Hopefully not. In reality, most people who take out term protection will never need to claim on it.

Term protection is not about expecting something to happen. It is about making sure everything is taken care of if it does. In that sense, it is no different to other types of insurance. You do not take out car insurance because you expect to have an accident. You get it so you are covered if one happens.

The same applies here. Term protection helps ensure your family is financially supported if you are no longer there to provide for them. The likelihood of this happening is generally low, which is reflected in the relatively low cost of cover compared to some other types of insurance.

Taking out term protection is not about expecting the worst. It is about planning for the best possible outcomes, no matter what life brings.

No term like the present

Ultimately, the reasons people delay taking out term protection are rarely down to a lack of awareness. More often, it comes back to competing priorities, everyday habits, and the natural tendency to put off decisions that do not feel urgent in the moment.

In many cases, it simply takes a moment to move from intention to action. Because when it comes to protecting what matters most, there really is no term like the present.

₁This quote is based on a single life, aged 30, non-smoker. A government levy (currently 1%) applies and is included in the premium.