Reasons why people believe they don’t need life insurance

Sitting down to sort out a life insurance policy isn’t exactly a task many of us approach with particular glee. Search for the “top 100 weekend activities in the UK” and you’ll be hard-pressed to find any financial housekeeping-related activities on there.
There’s no escaping from the fact that arranging one’s life insurance coverage is fraught with mundanity, but it is nevertheless, one of the most important financial decision you might make. So why do so many of us put it off?
For first timers, the sheer wealth of insurance options available presents a headache, since they may be unaware of what they all mean. Life Insurance, Critical Illness Insurance, Decreasing Term Life Insurance, Whole of Life, Over 50’s Insurance – the list goes on. Without a specialist to guide you through the various types of policies available on the market, arranging cover can become a daunting task.
Not having got around to sorting out your life insurance coverage is one thing, but putting it off because you think it’s surplus to requirements is another.
Here are the Top 6 reasons why people think they don’t need life insurance (and why they might be wrong).

  1. It’s too expensive

    A common misconception associated with life insurance is that it is too expensive. While insurance premiums generally rise with age, policy options available on the market cater to wide spectrum of household incomes. They younger someone “locks in” their policy term, the cheaper it will work out.
    Comparing monthly life insurance costs to other monthly “necessities” can put things into perspective. A monthly subscription to Netflix might afford a few enjoyable nights in, but it pales in comparison to what a life insurance or critical illness pay-out would mean to a family in a time of need. A membership to a swanky gym might motivate you to get the perfect body, but you might find yourself rueing your choice of spend if critical illness strikes.
    Life insurance is affordable, but it may mean shifting one’s focus from short term gain to long term security.

  2. I’m too young for life insurance – that’s for the future

    Being relatively young and free from major responsibilities may leave you wondering why you even need Life Insurance, but none of us are going to live forever. Being young also means that you’re less likely to suffer from health complications. This translates as less risk for the insurer and a cheaper premium as a result.
    There are many policies on the market aimed at young professionals. So, unless you plan on being a single city rat for the rest of your life, it makes perfect sense to get yourself insured with life and critical illness insurance in case you’re ever left unable to work. You can always review your cover as houses are bought and babies are born.

  3. I’m strong and healthy

    Eating well, being active and maintaining peak physical condition can sometimes give you the feeling of being invincible. Although you might feel indestructible in the moment, the feeling certainly won’t last forever. Thankfully, the whole purpose of life insurance is to prepare for the worst and to protect your loved ones in their time of need.

  4. My job offers life insurance 

    Your employer may offer life insurance as a company benefit, but what many don’t realise is that it the pay-out offered isn’t as much as you think. Double your annual salary or £50,000 may seem like a lot of money, but it may not be enough to cover you for a long period of time.

  5. Insurance companies don’t pay-out

    It is not uncommon for prospective and current policy holders to remain sceptical about whether they will receive their payment of not in their families time of need. After all, we should never trust those greedy insurers, right?
    Wrong. Contrary to popular belief, insurers pay out on the majority of claims. In 2016, Legal and General paid out 98.6{bc6b33b059658b64a479dcd9358eb662a302ca63ec5f6ed6ea3d5485bd7a7211} of life claims, totalling £316.5 million.

  6. It’s on my to-do list

    We all say we’re going to get round to doing things we don’t deem vitally important, but taking out life insurance should not be one of them. Don’t let your “I’ll do it soon” turn into your family’s “if only”.

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