There’s nothing exciting about life insurance. But it’s not meant to get you hyped up. It’s meant to take care of you and your loved ones. Life insurance is designed to protect your income in the unfortunate event of your passing, whether too early or at a ripe old age. But who wants to think about that? We all love the idea of YOLO (You Only Live Once), but no one likes to think about that “only living once” is referencing the end.
This may produce the type of consumer who shies away from thinking that life insurance is a necessary option. Even worse, a consumer who purposely doesn’t think about it and develops inaccurate opinions about life insurance. Here are 4 reasons why people don’t have life insurance and why they’re not entirely understanding the truth behind a much-needed piece in their financial portfolio.
The Cost is Too High
The first mistake many people make is over-estimating the cost of life insurance for a variety of reasons — age, gender, pre-existing conditions, etc. — and that stems from not knowing the facts. 44% of Millennials estimate the annual cost for a 20-year term life insurance policy at $1000 a year. But, in reality, they could purchase one for around $165 a year.
There are Other Financial Priorities
Life insurance is about the unexpected. It’s natural for more tangible concerns to take precedence. Student loan debt, retirement planning, credit card debt, mortgage payments are all examples of more pressing money concerns. No one thinks about the unexpected, hence the definition of the term. As human beings we sometimes have tunnel vision to only perceive that which is in front of us.
Life Insurance is a different form of protection. It covers that which we cannot perceive. But it’s also not only about you, but what comes after you. Your loved ones. Those who you certainly do not want saddled with the debt you may leave behind. Purchasing life insurance is an important financial priority that you should not, and cannot, ignore.
Unsure of the Need
You’re never too young for life insurance. Much like planning for retirement, the earlier you start, the more financially protected you will be. Plus, your younger age will have you qualifying for lower premiums. If you develop health issues as you get older, there’s no longer a concern about getting life insurance at a higher price. You’re already covered.
You’re also never too old for life insurance. Policies may come with a higher premium, but you will be able to cover the costs of any debt you have incurred once you pass. Plus, any final expenses such as burial fees and estate closings will no longer be the responsibility of your loved ones.
Believe You Don’t Qualify
While the policies may be more expensive for those with pre-existing conditions, they still exist for the specific purpose to cover those with health issues such as diabetes. If you’re concerned about risk factors disqualifying you for life insurance, don’t consider that door closed to you. Talk with a financial professional about your options. Tailored life insurance plans are available.