Let’s face it, for most, life insurance is not the most compelling subject and one which many of us don’t like to give too much thought.
What’s more, paying a premium each month while you’re young and money may be tight, may seem unnecessary.
But stick with me and read our ‘top 5 reasons people don’t take of life insurance’ (and why they should!) It could be one of the best decisions you ever make.
1) I can’t afford it
It’s December 2017, in the UK. Inflation is up to 3%, wage growth is not keeping pace and peoples’ disposable income is being squeezed.
We all incur those unavoidable costs, mortgage or rent, council tax bills, the food shop, petrol, and utility bills. So you can’t afford the luxury of life insurance cover too, right?
In reality, the cost of life insurance may not be anywhere near as expensive as you may think. Especially if a policy is taken out while you’re still young.
That’s less than 34p a day. Let’s face it 34p won’t buy you a packet of your favourite crisps these days. But the £130,848 pay out could clear your mortgage or cover future living costs for your family if you’re no longer around.
So, if you do not have life cover, I challenge you to give up a bag-of-crisps-a-day and trade it in for the reassurance that life insurance brings.
Not only would you receive peace of mind that your loved one’s future is fully protected, but you would probably be slightly healthier too.
2) I’m young, fit and healthy
You go to the gym, you eat well, you don’t smoke and even if you do say so yourself, you look pretty good.
From experience, we know that most young people never think they’re going to fall seriously ill or worse.
Although there are many factors that determine the cost of your life insurance premium, age is one of the most influential elements.
In reality, the best time to take out life cover is when you’re young because you can lock in ample cover, but pay a very low monthly premium – perhaps as little as 20p-a-day.
If, god forbid, something was to happen to you, trying to secure comprehensive cover after falling ill, would either be impossible or just very expensive.
Even if you’re not yet a homeowner, the majority of young people do have some financial commitments that need protecting.
Maybe you have a car on finance, a 12-month rental tenancy agreement, credit card debt or a student loan?
3) I don’t have children yet
When we take on the scary responsibility of becoming a parent, it often makes us re-evaluate and think more seriously about the future.
This is often the time when people take the leap and secure a life insurance policy. I know from a personal perspective; this is when I took out mine.
So if you don’t have children, there is no need for life insurance cover, right? Wrong.
What if you’re in a loving relationship and you have a joint mortgage? Could your partner afford the mortgage repayments without your income? Could they afford on-going household bills and home maintenance costs?
What if you had ‘borrowed’ significant funds from your parents in order to pay the deposit? Would you want your parents to lose out on getting the loan back?
Maybe you have other debts too, which would become their responsibility? And then there’s the average £4,078 cost of a funeral.
So yes, having children is quite rightly a massive factor in why people take out life insurance. But we believe the vast majority of people would massively benefit from having a policy, with or without children.
4) I think I am covered by my employer?
In today’s business world, most employers take employee benefits pretty seriously. It’s often used as a bargaining chip, to recruit in-demand candidates.
Perhaps you have just started a new job and been offered ‘death in service’, promising to pay out 3x your annual salary if the worst were to happen. You probably think you’re covered?
In truth, especially if you have a mortgage and/or children, 3x your salary is not going to provide much long-term security for your loved ones.
In contrast, life insurance, even if you have only just started paying in, could clear your entire mortgage, provide your family security, not just for a few years, but for the rest of your spouse’s life, or until the children are financially independent.
Another important consideration with death in service protection is that, if you move to a new job, as most of us do, the likelihood is the policy can’t move with you.
So although employee benefits could provide a welcome cushion, in many cases it will not provide sufficient long-term cover.
5) I just never got around to it
This is a very common reason, from our experience.
You understand the benefits of having life insurance. You have the funds to pay the monthly premiums. But you just never got around to taking the plunge and securing that policy.
Let’s be honest, there are normally other things most of us would rather be doing than trawling the internet, looking for the best life insurance quotes.
It’s very easy to put things off until next week…..or the week after that………or next month.
The reality is we don’t receive a reminder in the post, prompting us to take out life cover. It’s up to us to be proactive and prepare for the unexpected.
If you want to take out life insurance to protect your loved ones, don’t put it off for another day.
Taking out life insurance is a heroic, selfless act – so, be a hero today and get on with enjoying life.