In today’s unpredictable world, life insurance stands as a cornerstone of financial security and peace of mind. Despite its undeniable benefits, a significant number of individuals still choose to go without this essential protection. To better understand this reluctance and bring light to common misconceptions, we delve into the top 10 reasons people often give for not having life insurance.
This article aims to break down the barriers and address common concerns that may prevent many people from obtaining life insurance coverage. From misconceptions about affordability to a lack of awareness, we will discuss the reasons behind this hesitancy and provide insights that may help individuals reevaluate their stance on life insurance. By demystifying the topic, we hope to emphasize the importance of life insurance as a vital part of any comprehensive financial plan, regardless of one’s stage in life.
This is a big one, even after eliminating those in #2. I recently spoke to a father of 5 young children who rejected my offer because he “just didn’t see a need for life insurance.” I asked him how his wife would be able to support his 5 kids if he passed away and they could no longer depend on his income.
The bottom line is anybody who has a spouse (or significant other) and/or children that depend on his/her income should have life insurance. There are other personal and business reasons for buying life insurance, but this one seems to be the biggest reason.
People who don’t have families dependent on their incomes usually don’t have a need for life insurance (unless they want to take advantage of the living benefits of a permanent policy, such as whole life or universal life insurance). If there are no other needs, such as business continuation, estate protection, or paying for final expenses, then they shouldn’t purchase a policy. Any life insurance agent or broker worth his/her salt will not sell a policy to someone who doesn’t have a clear need for it.
Either they overestimate the cost of a policy or don’t consider that, with a minor shift in one’s budget, affording a policy is not an issue. In the overestimating category, the 2014 Insurance Barometer Study done by LIMRA and LifeHappens.org says it all:
While 2 in 3 consumers say life insurance is too expensive to purchase, people tend to overestimate the cost. In fact, a quarter of the respondents thought the price for a $250,000 term policy (that would cost $150 per year) would cost at least $1,000 annually.
In the budget-shifting category, let’s double the premium of the policy mentioned in the last paragraph to $300 annually, which would purchase a $650,000 20-year term policy for a healthy 30-year-old male.
If this gentleman has a family and tells me he can’t afford a policy, my first question is, “How much do you spend at Starbucks (or other coffee emporium) every morning?” If the answer is $3 or higher, I show them that if they cut back on the daily java drinks, they can easily afford that policy. If they don’t indulge in a daily caffeine treat, I can usually find other places to find $25 dollars a month to protect their families financially.
If you fall into any of the categories mentioned above, we encourage you to speak with an experienced and reputable independent insurance professional. An experienced life insurance agent can help you understand how you affordably protect your surviving loved ones if you should die unexpectedly, and in most cases, your monthly premium will be less than feeding a family of four at a diner each month. Call us at 866-868-0099 during normal business hours or contact us through our website 24/7.
A common misconception is that life insurance is unaffordable for the average person. However, many term life insurance policies offer affordable premiums, especially if purchased when the individual is young and healthy. Shopping around for competitive rates and working with an insurance agent can help find a policy that fits within one’s
Yes, many individuals may feel they do not need life insurance because they are young, single, or do not have dependents. However, life insurance can still serve essential functions, such as covering outstanding debts, funeral expenses, and providing financial support for loved ones in the event of an untimely death.
Life insurance can seem complicated, with various policy types and coverage options, which may deter some from purchasing a policy. Working with a trusted insurance agent or financial advisor can help clarify the different policies, address concerns, and simplify the process of obtaining life insurance coverage.
Trust issues or negative experiences with insurance companies can be a factor in avoiding life insurance purchases. However, it’s essential to research and compare reputable companies, read customer reviews, and consult with a financial advisor to find a reliable and trustworthy insurance provider that meets your needs.
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