Ten (10) reasons you don't need Life Insurance
Updated: Apr 20, 2022
Life insurance is ignored as unimportant because it's misunderstood and sometimes confusing. 48% of Americans don't own Life Insurance for a variety of misguided reasons. Speak with an experience insurance advisor to help you debunk the misunderstood reasons why you think don't need Life Insurance. Let's declutter all your misconceptions and look at ten (10) reasons why you should not ignore securing a life insurance policy for you and your loved ones.
10 Reasons Why You Don't Need Life Insurance
You don't need Life insurance because you consider yourself an excellent driver and a safe and sensible person. So the odds of an accident happening to you is very slim
There is a reason why automobile insurance is required to operate a vehicle. It is also unlawful to drive your vehicle without insurance. The odds of having an accident is not slim, but it's actually highly possible you will have an accident. Life insurance can supplement or fill the gap where your liability coverage lacks.
You don't need Life Insurance because your home is paid for in full, and you don't have a mortgage. You will likely tap into your home's equity for emergencies.
Your home's equity is not an ATM. You'll likely face some problems in the event of a market downturn and your home's value decreases. In addition, unlike an ATM, getting an HELOC (Home equity Line of Credit) from your home can cost a couple thousand dollars in administrative fees. In an emergency situation, how long would you be able to wait for paperwork and approval from your mortgage lender?
You don't need Life insurance because your children are grown and each has a professional job that pays them a lot of money. You don't need Life Insurance because your children will take care of you.
Your adult children can also have accident or die from an accident, illness or disease. If you feel it's the job of your adult children, then It would be wise to encourage your children to insure themselves and record you as a beneficiary of their life insurance. Or get your own insurance policy and ask your adult children to pay for your policy. Your children may not have the cash to support you should you encounter a catastrophic life event.
You don't need Life insurance because you're getting a great pension and money from your old employer's 401K when you retire.
Your pension is never guaranteed and your 401K is in the stock market. Funds invested in the stock market is never guaranteed. With uncertainty and market volatility, you may not have the amount of funds you expect. Your retirement is not your life insurance policy. Life insurance should be used to preserve your retirement savings. Consider a life insurance policy to keep your retirement afloat and secure when the unforeseen happens. You can also get an insurance policy with an income rider. This offers both life insurance and income that you can use to supplement your retirement income.
You don't need life insurance because you get one on your job that covers you and your family.
Generally most employer covered insurance policies are Term insurance. Term insurance last for a specific period of time and expires after a number of years. Generally upon expiration, you are much older and your whole life insurance coverage will be much more expensive because of your age and possible health conditions. i each of the symbols at the bottom of your post. Insert an image or gallery, embed HTML, or add a GIF to spice up your content.
You don't need life insurance because your parents had one that didn't pay out.
More than likely your parents had Term Insurance that expired. Some consumers will forget that they had a Term policy. The policy expires while they still feel they have a policy in force. That policy sits in the kitchen drawer offering a false sense of security, when in fact they are not covered. There are other alternatives to a Term Insurance, such as convertible term or whole life insurance. Consult with an experienced advisor to ensure you're adequately covered for you and your family
You don't need life insurance because you've invested in stocks or other securities, which you feel means you're self-insured.
Generally if you have money invested in the market, you will want to secure it from personal emergencies. Especially if the income will be used for your retirement. While you may not have control over market volatility. you do have control over protecting what's left of it, after a market downturn.
You don't need life insurance because it's too expensive and you can't afford it content
You'll sometimes hear people say they think insurance is too expensive or they don't wan to be insurance broke. Yet these are the same people who will spend what's left of their paycheck at the mall or on $7.00 coffees. In situations where there's a catastrophic event, being broke and broke down is the perfect combination for bankruptcies' and divorces. An illness or tragedy just seem to intensify when you have no income to pay your bills or any way of paying for medical expenses.
You don't need life insurance because you're too young and you have a lot of time before you get older.
The absolute best time to get life insurance is while you're young. You're able to afford a whole life policy with cash value. Cash Value whole life builds cash that you can use to later. Your premiums are low while you're young, because you will likely not have developed any diseases or illnesses that a mature adult would probably develop in their later years. You will also have your age in your favor. So get a life insurance policy while it's cheap.
You don't need life insurance because you have mortgage insurance, so you think it will pay out if you can't pay your mortgage.
Huge misnomer is that Mortgage insurance covers your mortgage if you can't pay it. It is one of the most misunderstood concepts in the insurance industry. Mortgage insurance will cover your mortgage if you default. The lender is the beneficiary of mortgage insurance, and insurance company pays the benefit or default amount to the lender, not the borrower. If you get ill and not able to earn and miss mortgage payments, you may lose your home for missed payments.
Check out how to start your plan "B" with life insurance, or start a Roth plan for your retirement. How to use life insurance for you dependents education and child support payments. Life Insurance for your life and so much more. Life insurance is not just final funeral expense. Life insurance is for your later needs while you're alive. What do you think you need to protect today?