5 reasons people don’t buy life insurance
You probably know you need life insurance. You understand it’s important to protect your family should you or your spouse suddenly pass away. But you still don’t own a life insurance policy. In the 2017 Insurance Barometer Study done by Life Happens and LIMRA, 85 percent of respondents agree that most people need life insurance, but only 59 percent say they have life insurance.
Take a look at some of the top reasons people procrastinate, and why having life insurance sooner than later can better protect you and your loved ones.
It’s too expensive for me.
Most consumers put off buying life insurance because they believe it’s more expensive. In the 2017 Insurance Barometer Study, consumers were asked how much a $250,000 term life insurance policy would be for a healthy 30-year old, the median estimate was $500―more than three times the actual cost.
Life insurance can usually be very affordable for young families at less than $200 annually. Think about how often you buy a specialty coffee. If you’re a regular buyer and purchase a $4 drink on the way to work almost every day, that’s about $1,000 in one year. In comparison, life insurance now seems very affordable.
I’m young and/or healthy.
If you’re young, life insurance may be the last thing on your mind because you’re strong and in good shape. You feel healthy and your doctor agrees. But an accident can happen at any time. You could fall seriously ill. If you try to get a life insurance policy after a diagnosis or being seriously injured, your chances of receiving good coverage, if any at all, become much more difficult.
No one lives forever and life insurance will protect your loved ones in the face of the unexpected.
I don’t understand life insurance.
Life insurance can be confusing. Start with the basics and do some research so you feel educated. Try these articles to get started:
- Life Insurance 101: What you need to know
- Financial protection for families with stay-at-home parents
- What to know when shopping for a financial advisor
Once you feel comfortable, talk with a financial advisor who can help you make the best decision to fit your needs and protect your family.
I’ll get to it eventually.
Life insurance doesn’t have a deadline. You don’t have to own a policy by a certain age, so it’s easy to procrastinate. But without life insurance, four in 10 households would have immediate trouble paying living expenses if their primary wage earner died.1 The responsibility you are putting off could save your loved ones from a financial burden. And you never know when someday could be today.
I don’t like to think about death.
Instead of thinking about the end, think about the protection and financial security you are providing your loved ones. With a strong financial plan and life insurance policy in place, they can continue to live the life you want for them being worry-free and without debt.
12017 Insurance Barometer Study by Life Happens and LIMRA