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6 Reasons People Give to Avoid Buying Life Insurance (And Why They Are Wrong)

In today’s world, buying a life insurance is as important as getting the education and if you fail to buy one, you or your family may end up in a financial crisis in future.

As we all know that no one can predict what would happen in future and hence the best way to live a peaceful life is, by keeping yourself prepared for all the wrongs.

Suppose, if you (the only bread earner of the family) die in an accident, how your family would survive and fulfill their dreams.

Well, this is the moment when a life insurance comes in.

Despite being a very important thing to do, a number of people just ignore it.

And the reason they give is simply unrealistic.

Well, today we are discussing 6 common reasons which people give to avoid buying a life insurance and why they are wrong.

So, without wasting any more second, let’s get started:

#1 It’s very expensive

It’s not that all Life Insurance Policies are very expensive, though there are some which are comparatively very expensive than others.

If you family’s financial condition is not so good to afford a permanent life insurance, then you can surely go for the term life insurance.

Term Life Insurance is kind of insurance which provides coverage for a certain time period such as 10, 20 or 30 years at a very low cost.

There are several companies who offer term life insurance and you can easily get a million dollar policy, just by spending few dollars each month as premiums.

And I personally believe that every person can at least save few dollars each month for the betterment of his/her family.

In life insurance, it’s not the price which matters, but the safety you get in return. So, never avoid buying life insurance just to save few dollars.

#2 Life Insurance is only for babies and old people

Now, a majority of people believe that life insurance is only for babies and old people.

But if they look closer, they would come to know that Life insurance is for all, irrespective of their gender and age.

Well, as I earlier discussed that no one can predict what would happen next.

Then, how can one decide that nothing would ever happen to him/her and hence he/she doesn’t need any life insurance?

Look, the fact is having a life insurance makes your and your family’s financial future secure.

Suppose, you are a healthy person and suddenly you met with an accident and died on spot. What would happen to your family if you haven’t bought life insurance?

It’s not only about health or some diseases, but it’s about any ‘wrong’ incident, which can leave your family in crisis.

However, you should first verify whether the policy (you are willing to take) covers accidental death or medical death or medical expenses.

#3 I am fit and fine, why I need life insurance

Its very good that you are fit and fine today, but can you say with full surety that you will remain healthy and fine in future.

Well, as we know anything could happen in future, so it’s always better to prepare for the worst.

Buying a life insurance may not make any difference today but it could make a huge difference in future. And planning for the future is the best thing you can do.

So, always make sure to buy a life insurance; doesn’t matter which one; just understand your condition & requirement and then decide.

#4 I already have a life insurance through my employer

It may possible that your employer has provided a life insurance coverage for you and your family.

But you should understand the disadvantages of having “only” life insurance through an employer.

Here is the list of things you miss, when you have a policy through the employer:

  • Your employer can change in policy anytime, without your consent.
  • The policy you have taken can be discontinued by the employer anytime.
  • Your police through employer remain valid until the time you work in the organization.
  • You aren’t getting desired coverage as the coverage amount completely depends on the company’s understandings and conditions.

Now, the fact is, if you employer provides life insurance, don’t refuse it as it could become a plus point towards your financial future.

But, avoiding an independent life insurance after having a policy from the employer is really a bad decision.

#5 I don’t have dependants

Well, if you don’t have any dependents on you, it doesn’t mean that buying a life insurance would be worthless for you.

Life insurance can also help you get a loan, which you can use in clearing your current debts or starting a new business.

So, buying a life insurance is always a good option whether you have dependents or not.

#6 I can rather invest my money somewhere else

Yes, you can and surely you should.

But having a life insurance is a different thing altogether.

Look, you can make an investment in anything (which may be very profitable for you) but no any investment could provide health benefits or death benefits or accidental benefits.

Life Insurance is especially for these conditions.

So, guys, these were the six common reasons which people give to avoid buying life insurance and why they are wrong.

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