4 Reasons People Don’t Buy Life Insurance
If you're like most people, it's not that you don't appreciate the value of life insurance. You probably wouldn't mind owning additional life insurance. It's just that you don't want to buy it.
Thinking about buying life insurance, talking about it, discussing the reasons for the purchase — all of this makes many people feel uncomfortable. Here are just some of the reasons why you may be putting off buying the life insurance you know you need.
“I don’t have enough time.”
You'll get around to buying life insurance, but not today. With everything else you have to do, buying life insurance can come off as a low priority — just one more thing you ought to do. Who wouldn't rather take the dogs for a walk, attend a child's softball game or spend those precious few hours of free time visiting with friends?
Nonetheless, buying life insurance is an important task to be addressed. Life insurance proceeds can help your family meet their financial obligations in the event of your death.
“The subject is boring… and morbid.”
If you don't like to think about death, you're not alone. It’s an unpleasant subject, and life insurance raises issues of our own mortality. Some people say that the very thought of starting the life insurance buying process makes them feel stressed out. It's a subject we'd rather ignore than address, and the result can be inertia or denial.
It doesn't have to be that way. People who do act on their life insurance needs tend to focus on the positive aspects: the idea of meeting their responsibilities to provide and care for their loved ones. They think of it as contingency planning, protecting their families against the uncertainties of life. They also recognize that life insurance is really about life and love, about helping to ensure a positive quality of life for their spouse or children if they pass prematurely.
“Life insurance isn’t a high priority compared to other expenses I have.”
For many underinsured people, it's not so much that they don't want the life insurance they need; it's difficult to find the extra dollars to pay for it. Buying life insurance you can't afford benefits no one. That's why it's important to purchase a policy that meets your needs and your budget.
“I just don’t know where to start.”
If you don't have a clue about which type of policy is right for you, or how much life insurance you need, join the club. Few of us truly understand life insurance: why we need it, what type of policy is best, how much we need, when and how benefits are paid, how benefits may be taxed and more. That's OK.
It's not your job to know everything about life insurance. A financial advisor can guide you through the process of selecting the policy that suits your needs, budget and objectives and can answer your questions.
The bottom line
It's easy to understand why people tend to put off purchasing the life insurance they know they need. But look at it this way: buying life insurance is one way you can help secure your family's financial future. And what's better than knowing your loved ones could be more protected, even when you're no longer around to take care of them?
Interested in speaking with a financial advisor? To schedule a no-cost, no-obligation initial consultation, please call 1-888-294-0202 today.
Article Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2020. September 2020
Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value.
Ameriprise Financial Services has a partnership with this financial institution to provide financial planning services and solutions to clients. The financial institution is not an investment client of Ameriprise but has a revenue sharing relationship with us that creates a conflict of interest. Details on how we work together can be found on ameriprise.com/sec-disclosure.
This information is being provided only as a general source of information and is not a solicitation to buy or sell any securities, accounts or strategies mentioned. The information is not intended to be used as the sole basis for investment decisions, nor should it be construed as a recommendation or advice designed to meet the particular needs of an individual investor. Please seek the advice of a financial advisor regarding your particular financial situation.
Ameriprise Financial is not affiliated with the financial institution.
Before you purchase life insurance, be sure to ask your financial advisor about the features, benefits, risks and fees, and whether life insurance is appropriate for you, based on your financial situation and objectives.
The initial consultation provides an overview of financial planning concepts. You will not receive written analysis and/or recommendations.
Securities offered by Ameriprise Financial Services, LLC. Member FINRA and SIPC.