5 Reasons Why People Don’t Buy Life Insurance

Have you ever imagined how your retirement life will look like? What will happen to your spouse, children, siblings or parents in case of an unfortunate event? How do you cope and manage your life if you’re severely injured and lost your job? Given such possibility, it poses the question of why people don’t buy life insurance despite knowing the risks involved.

Life is unpredictable and filled with unpreventable events too. It’s intimidating to find out that we’re unable to control what happens next. The point is, have you prepared yourself to face the aftermath?  

By having life insurance, you’re able to plan your finance and be worry-free with your life.

What is life insurance?

Life insurance is often mistaken for general insurance. To clarify, general insurance is a form of coverage where you receive financial compensation for any damages and losses. Life insurance, on the other hand, is a type of commitment where you’re required to pay a certain amount of premium on a timely basis for life protection.

Many people have mistaken life insurance as the legacy they leave only to the next generation, but in fact, there are many types of life insurance where it guarantees financial support for all sorts of scenarios — for example, death, children, lifetime injury, retirement fund, and more. 

To put it simply, think of it as a form of saving but it comes with greater value in the long run. Besides, life insurance is also a risk management and wealth preservation tool to prevent being under-insured.

Unfortunately, life insurance is always under-appreciated.

Here are five reasons why people don’t buy life insurance.

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It’s expensive, and they don’t want extra commitment

Always the first factor in making a purchase decision. Commitments like car, house, children, parents can be a lot to take in every month. Let alone life insurance. However, it’s a misconception that life insurance is expensive when you buy young. As your age and your health deteriorates, the premiums will undoubtedly increase. Without life insurance, you are at risk of being under-insured and may not have sufficient money to cover your losses later on.

So, which is more expensive?

They have no children

Again, another misconception from those who refuse to get life insurance. They thought the legacy of life insurance could only be inherited by children. Life insurance can also protect your spouse, siblings, and even your parents.

Life insurance is not their priority

If you ask people what’s their priority, life insurance rarely comes first. They would rather allocate the money on other matters. The future is too far away for them to consider. Or perhaps it’s the “it won’t be me yet” mentality, and thus the delay – which brings us to the next point.

They’re young, and they have good health

Life insurance is never a concern for young people as they think this is something too “far away” for them. They don’t see the need for it and tend to neglect the planning for the future. However, when illnesses and accident catch them off guard, they may financially collapse. So, the earlier you plan, the less you’ll regret in the future. And there’s no better time than now to get insured as the premiums are still affordable.

It’s a taboo to talk about “it.”

Death is never an open and favorable topic among young people. It is important to be open-minded by engaging or thinking about all kinds of possibilities in life and be well prepared for it.

Why do you need life insurance?

Increase self-protection

Life insurance protects you and your family at all costs. In case of serious injury that leads to unemployment, you can still receive medical treatment and daily support with life insurance. In case of your passing, you can leave a substantial amount of money to your family, spouse, and children to help them pay bills, fulfil other obligations as well as go through financial difficulty especially when you’re the only source of income in the family.

Reaching your financial goals

Despite the most common reason for people getting life insurance is to ensure that the needs of their loved ones are met after their demise or if they suffer from total and permanent disability, life insurance can also help you to achieve your financial goals – be it for retirement or your children’s future education.

At the end of the day, it all boils down to identifying your goals and choose a plan that suits the needs of your family and loved ones. And remember, the earlier you buy, the earlier you’re covered, and the more funds you’ll have to protect your life and family in the future.

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