3 Excuses for Skipping Life Insurance (And Why They Don’t Hold Up)

fun young woman scolding or reprimanding with softnessWe spend our lives doing everything we can to provide for our loved ones. We work hard to make sure they have the material, emotional, and financial resources they need to feel secure and cared for. We do whatever we can to help them achieve their goals.

But, life can be unpredictable; and you can’t plan for every potential eventuality.

Life insurance provides a means by which you can preserve your family members’ well-being and ensure their ability to pursue their dreams.

And yet, many people choose not to purchase life insurance. Go figure!

The most common reasons people give to support their decision to forego the protection of a life insurance policy are that

  1. It’s too expensive
  2. It’s not their most pressing priority
  3. They already have coverage through their employer

But each of these reasons is rife with common misconceptions.

Too expensive?

Though cost is a legitimate concern, many people find that the actual monthly fees are much lower than they had expected, especially if they consider “term” rather than “whole” life insurance.

While insurance providers tend to promote the lifetime benefits of whole policies, policies that provide coverage either for a limited number of years or up to a certain age are more cost effective and often a more sensible fit.

AdobeStock_325370692-300x250Not a priority?

And, while there are certainly many financial priorities vying for our attention at different stages in our lives, life insurance should be considered important even though it may not seem urgent.

Just imagine the potential financial hardships your family might face without the support of a life insurance policy. From final expenses to mortgage payments and debt relief, life insurance can make a huge difference in how easily your loved ones are able to manage certain aspects of their lives in the wake of a loss.

Is your employer policy sufficient?

Finally, though many people do have some form of group life insurance through their employers, such benefits are typically not sufficient and are terminated when the insured leaves his or her job.

In most cases, employer-based life insurance provides coverage that is equal to only one or two times the individual’s annual salary. This amount is woefully below the amount usually recommended by financial planners of at least ten times your annual salary. Even though employees typically have the option to purchase supplemental insurance to augment the modest policy offered by their employer, it’s usually wiser to purchase a separate policy that is not tied to employment status.

Determining which policy type and benefit amount are best for you depends on many variables including age, health, and financial responsibilities. For instance, a young couple just starting a family has financial considerations that are very different from an empty nester whose children are already independent and have established their own households. Likewise, a person without any dependents will have different insurance needs than someone whose children are preparing for college.

Professionals can help you navigate the various life insurance policy types and features to sort out which option is most appropriate for your situation. Then you can rest easier knowing that your family will be well cared for no matter what happens.

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