September 10, 2020

Top 6 Reasons Why People Don't Buy Life Insurance - Survey Says...

At the start of the pandemic, 46% of American adults didn’t have life insurance. The 2020 Insurance Barometer Study from Life Happens and LIMRA. looks at the reasons for consumer’s financial behaviours. Today, we’re going to look at the top 6 reasons why people don’t buy life insurance.

Here's the Gist
  • They have other financial priorities
  • They think life insurance is too expensive
  • They think they don’t need life insurance
  • They don’t know what type to buy
  • They haven’t gotten around to it
  • They don’t like thinking about death

Let’s explore further.

1. They Have Other Fiancial Priorities

This is exactly the reason why you should buy life insurance. You have financial responsibilities, so what happens to your family if you’re not there to take care of them?

A house payment doesn’t go away because you died — unless you bought enough life insurance to pay it off, of course.

2. Life Insurance Is Too Expensive

Really? $13 a month for a $250,000 term life insurance policy for a healthy 30-year-old is too expensive?

The reality is that most people don’t know how much life insurance costs. In the study, researchers found that 50% of Millennials thought life insurance costs more than 6x the actual cost! The only people who think life insurance is too expensive are those who haven’t researched it.

3. They Think They Don’t Need Life Insurance

People without children or those who don’t work outside the home might think they don’t need life insurance. However, if anyone depends on you, you should have life insurance. This includes your elderly parents or your spouse who would have to pay for childcare if you weren’t there.

4. They Don’t Know What Type to Buy

There are a few different types of life insurance and you might get caught up in the confusion between term life vs. whole life vs. universal life insurance.

Don’t. Just buy a simple term life insurance policy and be done with it. This is often the best option for most people.  

5. They Haven’t Gotten Around to It

These days, especially with social distancing for the pandemic, it’s beyond easy to get a quote and apply for life insurance online. Most folks won’t even have to worry about a medical exam.

It might sound harsh but death doesn’t procrastinate, and you shouldn’t either.

6. They Don’t Like Thinking About Death

We don’t know what you tell you about this one. Death is death and, unfortunately, it is an unpleasant thought.

Here’s another unpleasant thought, your family losing their home and struggling to make ends meet. It doesn’t take long to sign up for life insurance and with that little bit of unpleasantness, you can save your family a lot of grief and struggle if the unthinkable does occur.

Buying Life Insurance

Where do you stand? Maybe you think you don’t need insurance or just keep putting it off. Don’t.

You never know what tomorrow brings.

Curious about the reasons why people do buy life insurance? Check out this article explaining the top reasons why.