6 Reasons People Don't Buy Life Insurance (And Why They're Wrong)
Skeptical about the importance of life insurance? Or have you made some assumptions about it? Most people put off buying life insurance for various reasons, whether they understand exactly why or not. Take a look at the top 6 reasons people don't buy life insurance, and see if any of it sounds familiar . . .
REASON #1 : It's Too Expensive
Most people make the assumption that they can't afford life insurance, or they think that it's more expensive than it really is. With budgets for growing families, things like the mortgage or rent, car payments, or student loans can quickly eat up a good chunk of the household income, and unfortunately a lot of people think that life insurance isn't a necessity. But a couple of things . . . life insurance often times isn't nearly as expensive as you might think. Especially when you can get a good policy for less than the cost of a daily cup of coffee at the local cafe, and if money's tight right now, just imagine how disastrous it will be if something happens to you, and your income is suddenly gone?
REASON #2 : That's just a death benefit, and nothings going to happen to me for a long time
And we hope you're right, and you have a long full life ahead of you. But sadly, life happens. Some things are simply out of our control. Accidents happen, and they're never planned and we never think it will happen to us. Life insurance helps eliminate this risk to your family. When most people think about life insurance they automatically think that it's something that only provides a death benefit and that's it. This is because for decades, this is how life insurance has been marketed to the public. But these are powerful products that have the capabilities of giving you many benefits while you're still alive. They can facilitate the dreams you have for your life, can help you build wealth, start a business, lower your tax liability, throw a barrier of protection around your assets and everything you work so hard to build. A death benefit is just one item on a long list of perks these products can provide. Build it to work for you.
REASON #3 : I'm healthy, I got time
Our health can change at any time and unexpectedly. As we get a little older we tend to realize we're not untouchable. If you're strong and healthy that's the perfect time to get a life insurance policy as you'll have more options available to you then, and you'll pay less. If you wait too long and your health changes, you will be paying more for the same amount of coverage or have the option taken away from you entirely. So don't wait.
REASON #4 : I have life insurance through my job
Many people are offered group life insurance coverage through their employer as part of their benefits, and for many people, this is their first experience with life insurance. They have no idea that their $50,000 policy (or one or two times their salary) isn't going to go very far, and they're unaware of just how limiting their group policy is. But most importantly, they are unaware that if their job status changes (they retire, quit, laid off) that their coverage will end.
REASON #5 : I don't have kids
Sure, kids are a big reason that many people by life insurance, But it is by no means the only reason. If there is anyone in your life who would suffer financially from your loss--whether it's a spouse, live-in partner, a sibling, even your parents, a life insurance policy is invaluable. Plus, as we discussed in reason #2, there is so much more you can do with a life insurance policy than just providing a death benefit. And kids aren't required . . .
REASON #6 : It's on my list, I'll get to it . . . eventually
You're not required to buy it by a certain age. You're not even required to buy it at all. But one of the biggest reasons that it's in your best interest to buy it sooner rather than later is because with life insurance, age is everything. The younger you are the cheaper it is for you, and you can lock that savings in for life. Just like we talked about in reason #3, changes in your health can cause you to pay a lot more for the same coverage, or have the option taken away from you entirely which is't a good place to be at. So do yourself and your wallet a favor and look into it now. Your "eventually" could turn into your family's "if only".
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Life insurance doesn't have to be an overwhelming or confusing thing. With the right professional, they can simplify the process for you and help you find the perfect solution that fits your needs. Call Tenaya Insurance Services today at (925) 322-8073.