No term like the present
When it comes to financial planning, some decisions tend to rise to the top of the priority list, while others quietly fall to the bottom. Term protection is often one of those decisions that gets delayed, not because people do not understand its value, but because it rarely feels urgent at the time.
And yet, the longer it is left, the more difficult and expensive it can become to put in place.
Why people delay term protection
The hesitation around term protection rarely comes from a lack of understanding that if the worst happens, the ones left behind can become financially vulnerable. Other factors tend to be at play here.
It’s not a single barrier but a combination of optimism bias, financial pressures, misconceptions around cost, and a natural discomfort with the topic itself that causes many clients to delay putting cover in place.
And it’s within these behaviours that some of the most common misconceptions about term protection begin to emerge.
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 people worry about their mortality, but there is value in understanding optimism bias, our tendency to believe we are less likely to experience negative events than others.
It is why people buy lottery tickets despite knowing the house always wins. When it comes to term protection, this same bias leads people 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 a family’s ability to maintain their lifestyle unless additional provision is in place to cover day-to-day living costs. In some cases, this may still mean that a family needs to sell the property or downsize to afford essentials such as utilities, groceries, and education.
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 placing real pressure on many families, with households increasingly forced to reassess which items in their budgets are essential and which are not.
Term protection is, of course, optional. Unlike mortgage protection, there is no legal requirement to take out a policy. 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 more severe. Protecting that income, and in turn the household budget, becomes even more important.
A common reason people give for not taking out term protection is the perception that it is too expensive. In many cases, this is a misconception. For example, a 30-year-old client can take out €200,000 of life cover over a 20-year term for as little as €13.93 per month with Zurich1.
That said, personalised advice on the appropriate level of cover remains key to ensuring the right protection is 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 are pushed down the list.
The challenge is that taking out term protection rarely feels urgent. There is always something more pressing demanding our attention. But later can easily become never, and circumstances, including health, can change unexpectedly.
Life insurance is better bought ten years too early than a minute too late. The opportunity to put cover in place on favourable terms is not something that can be guaranteed indefinitely.
When it comes to protection, doing this “later” can become the most expensive decision a client 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 ensuring that everything is taken care of if it does. In that sense, it is no different to other forms of insurance. You do not take out car insurance because you expect to cause an accident. You take it out so that you are covered if one happens.
The same principle applies here. Term protection is there to ensure that your family is financially protected if you are no longer there to support them. The odds of this happening are generally low, which is reflected in the relatively low cost of life cover compared to some other forms of insurance, such as car 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 simple tendency to put off decisions that don’t feel urgent in the moment. It often takes a moment to move from intention to action.
This is exactly where advisers add value. Not just in arranging cover, but in helping clients recognise the importance of taking 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.
