6 Reasons People Don’t Buy Life Insurance (and Why They’re Wrong)

Let’s face it. Most people put off buying life insurance for any number of reasons—if they even understand it Take a look at this list—do any of them sound like you?

1. It’s too expensive. In the ever-burgeoning budget of a young family, things like day care and car payments and possibly student loans eat up a good chunk of the money each month, and a lot of people think that life insurance is just outside those “necessities” when money’s tight. But two things: life insurance is often not nearly as expensive as you might think, especially when you can get a good policy for less than the cost of a daily cup of coffee at the local café, and well, if money’s tight now, what if something happens to you?

2. That’s that stuff for babies and old people, right? People of a certain age remember Ed McMahon telling them their grandparents couldn’t be turned down for any reason and figure that’s the target demographic for life insurance. Or, you might have been offered a small permanent insurance policy for your newborn, attractively presented with a cherubic infant on the envelope. The truth of the matter is that these are very specific insurance products—just as there are many insurance products for adults in their working years.

3. I’m strong and healthy! You eat right, you stay active, and everyone admires how grounded and centered you are. You passed your last physical with flying colors! That’s GREAT! But you’re neither immortal nor indestructible. It’s not even that something could happen to you – though it could – so much as when you’re at your strongest and healthiest, there’s no better time to get a policy to protect your loved ones. If you fall seriously ill or suffer significant injury later, it will make it tougher to get that kind of policy, if any at all.

4. I have life insurance through my job. Many people are offered life insurance as part of their employee benefit coverage –and often, it’s the first time they encounter life insurance and have no idea that a $50,000 policy, or one or two times their salary, isn’t as much as they think it is. It sounds like a lot of money, until you figure that it has to cover some or all the expenses for your loved ones in your absence. Plus, if you leave the job, it’s typically the type of insurance that doesn’t “move on” with you.

5. I don’t have kids. Sure, kids are a big reason why some people get life insurance. But that’s not the only litmus for needing protection. If there is anyone in your life who would suffer financially from your loss—your spouse or live-in partner, a sibling, even your parents—a life insurance policy goes a long way in making sure everyone’s still OK even if something happens to you.

6. Life insurance—it’s on my list … eventually. There’s no deadline on life insurance, no mandate from the government on purchasing it. Your parents may have never talked to you about its importance, and it’s certainly not the most invigorating topic for conversation. But don’t let your “eventually” turn into your loved ones’ “if only.”

If any of this sounds daunting, just know that you can talk to an agent—at no cost. They will help you figure out how much you may need, and also find a policy that fits into your budget. If you don’t have an agent, you can use this Agent Locator to find one in your area.

  1. As a Life Insurance Agent, I applaud people who realize the importance of Life Insurance and Financial Protection. I always see what happens after something has happened, and they wish they could turn back time. Talk to an Agent now. Later can become never.

  2. As a CPA I see this conversation come up a lot. This and disability insurance are wise investments. I have a relative who is making fantastic money , but with large student loans , several young kids and a stay at home wife. I have urged him to get life insurance. There is no problem with income, but his policy at work is sufficient he says. Big mistake I’ve told him.

  3. Great Topic that says why life insurance is a priority and the sooner we take it the better we are protected.

  4. Life insurance is really income protection. That is why it is so important. You should ask your self how long could my family live without my income. The 50,000 is a drop in the bucket.

  5. What is the monthly payment for a policy for about 50,000 for a 58 yr old woman. I do not work so income is limited

  6. Whole, term or accident whichever you prefer should always be part of your monthly budget. DMV says you have to have insurance on your car to drive. Cover your car or cover yourself hmmm what’s most important?

  7. Opportunity to add a couple of proprietary products to your toolbox with the ability to expand nationwide for those of you non-captured agents with a leader in Living Life Benefits.

  8. 7. You don’t care because your spouse spent your money on food and knickknacks while she worked part-time. If I die today, good riddance to it all.

  9. Lots of seniors don’t bother because they feel they won’t get approved because of their health. This may be the true with Term Insurance but NOT the case with Burial Insurance. In fact, some burial insurance companies don’t even ask ANY health questions and everyone is approved. https://assurancelife.org/

  10. This is a great list. Term life insurance has come down in price drastically over the past 20 years. Most people are surprised when the hear the price how affordable it really is.

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