Reasons to Not Buy Life Insurance

Experts usually present life insurance as something that you should have to be financially sound. If you work for a company full time, it is possibly part of your compensation package. Is it something you really need, though? Consider the common reasons why you might not invest in life insurance, as well as why you really should.

It’s too expensive

If you automatically associate life insurance with the word “expensive,” you’re not alone. According to a 2014 survey conducted by LIMRA, 63% of respondents didn’t purchase life insurance for this exact reason, with many individuals prioritizing everyday expenses over life insurance. However, 80% of these respondents also thought insurance cost more than it actually does.

Lacie Glover, a writer for, reports the average annual costs of life insurance for 30-year-olds wanting a $250,000 policy amount for a 20-year term life. For a man, the rate would be $152. For a woman, the rate would be $135. Accordingly, the actual pricing is much lower than the $1,000 that the LIMRA survey respondents under 25 years old estimated.

You can worry about life insurance when you’re older

You’re young. You’re healthy. Death seems so far away, so what’s the point of purchasing life insurance now? Although, as we previously established, life insurance costs are lower than expected, rates do increase with age. If that 30-year-old woman had waited to purchase insurance until she was 60 years old, her 20-year term life would cost $901 per year, which is an increase of $766, according to Glover. Plus, as you get older, your health tends to deteriorate, which could increase your life insurance expense even more.

You don’t have time to buy it

Between work, family life and sleep, who has time to buy life insurance? While it does take some time to purchase life insurance, Investopedia writer Katie Adams demonstrates how it’s really not as much of a time commitment as you might think.

Once you’ve decided on a life insurance policy, you must fill out an application, which asks for general information about you, such as your lifestyle habits and financial status. Then, you will usually be required to take an in-person medical exam. Unless additional testing is needed, then all you have left to do is wait to see if your life insurance is approved or denied. It’s really that simple.

Employer-provided life insurance is good enough

You may already be receiving life insurance from your employer, and if that’s the case, then it likely isn’t a good use of time and money to purchase life insurance on your own. The previous statement might in fact be true for some individuals, but there are still many reasons to purchase life insurance yourself.

According to Erik Carter, a contributor to Forbes Media, the life insurance from your work isn’t enough to cover your dependents. Plus, there’s a decent chance you won’t be able to retain your life insurance when you leave your job. Furthermore, you could also get a better deal on life insurance if you purchase it individually.

While purchasing life insurance may seem like a daunting or unnecessary task, life insurance may be very beneficial to you. If you’d like to learn more about life insurance, talk to a financial advisor to learn about your options and have your questions answered.

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