By Farm Bureau Financial Services on February 1, 2024
Common Reasons People Don’t Buy Life Insurance
No one wants to think about losing a family member or loved one, but having a life insurance policy in place will help you should the worst happen. Here are the most common reasons why people don’t buy life insurance, how it can affect them and why you should get life insurance if you don’t have it.
1. I Don’t Have Kids
Yes, kids are a big reason why some people have life insurance. However, if you don’t have kids, others could benefit from the coverage. If anyone in your life would suffer financially from your loss, such as a sibling or spouse, a life insurance policy could help. Life insurance has many uses, including covering mortgage payments, keeping a business in the family or paying for an elder’s care.
2. It’s Too Expensive
Many people overestimate the true cost of life insurance and believe it is too expensive for them. The cost of life insurance can vary based on several different factors, but getting coverage can be more affordable than you think. Even with other financial obligations, your life insurance payment could cost less than purchasing a coffee every morning.
3. I Am Young and Healthy
It is a common misconception that you don’t need life insurance if you are young and healthy. Things can change instantly and put you or your loved ones in a difficult financial situation. In addition, life insurance for young adults is often less expensive because your health risks are usually lower. Compared to older adults, young adults typically receive a lower monthly rate and access to more life insurance options.
4. I Already Have an Estate Plan
Another common reason people give for not buying life insurance is already having an estate plan in place, but life insurance can play a major role in estate planning. You can use life insurance to help your beneficiaries cover any of your final expenses such as funeral expenses, outstanding debt and taxes you have left unpaid. If you have multiple beneficiaries, life insurance can also help equalize your estate and assets among them.
5. I Don’t Think I Would Qualify
When people are disqualified from life insurance, it’s typically because they fall into a high-risk category. Dangerous jobs and hobbies or health challenges play a key role in determining whether you qualify for life insurance. Even if you are at risk from being denied life insurance, you can improve your likelihood of coverage by following your doctor’s orders and participating in safe activities.
6. The Varieties and Options Are Too Confusing
It’s not your job to know everything about different types of life insurance. Very few people know everything about their coverage. An experienced Farm Bureau agent can guide you through the process of looking at different life insurance options and help find a policy that fits you.
7. The Process Is Intimidating
Most people don’t know why they need life insurance or how to approach getting a life insurance policy. Working with someone who is familiar with the industry can help ease the stress associated with finding a policy.
Should You Buy Life Insurance?
The purpose of life insurance is to protect your family and prepare for the unexpected. Don’t let these reasons hold you back from getting the coverage you need to protect what matters most. Contact your local Farm Bureau agent today to find a policy that works for you.
