7 Reasons People Don''t Have Life Insurance

7 reasons people don't have life insurance

Published: 28 March 2017 | Updated: 03 February 2021

There are many reasons people may believe they do not require life insurance. Maybe they consider themselves to be too young or too healthy, or it could be a case of simply not getting around to it yet. Here we take a look at some of the reasons people don't buy life insurance and provide some insight those people may want to consider.

1. You are young

Life insurance is sometimes considered to be something needed by those in their twilight years. If you are young you may not have thought about what would happen should you pass away.

It may however be a savvy move to consider life insurance while you have youth and health on your side. This should allow you to find a suitable policy with lower premiums that can provide you with cover for a longer period of time and enable you to leave something behind for your dependants. It may be worthwhile considering your aspirations for your family and how they would cope without you.

2. You are healthy

Perhaps your health isn't something which has affected your everyday life, but will this still be the case in five years? How about in ten? Life insurance is often not about the here and now, but more about long-term planning and ensuring you have cover to protect your loved ones should unexpected circumstances arise in the future. 

3. You have sufficient assets

Life insurance may seem unnecessary if you have assets that appear sufficient to cover any unforeseen circumstances. Life insurance on top of this may seem like a depletion of the funds you currently have available. However, not all of these assets may be liquid and easily convertible to money. For example, you may have property or shares in a business. The market value of these assets may be low so it may be more advantageous for your beneficiaries to maintain ownership of them and sell them at a later date.

Life insurance is a payout upon your death which could cover the period of waiting for your other assets to liquidate. But additionally, it can help you to ensure your dependants have more than the sum of your assets to fall back on after you pass away.

4. Life insurance costs too much

The combined costs of phone and car insurance, holidays, mortgages, rent and bills can really add up. Another cost on top of this could be considered by some to be one cost too many. However, the cost of life insurance is normally dependent on a number of factors such as your age, your health, whether you're a smoker and how much cover you wish to purchase. So when considered in relation to other costs, life insurance can be a relatively low expense.

5. You have no dependants

Having no dependants could mean there is no financial fallout associated with your death, so it may be an unnecessary expense.  However, what if you become seriously ill, could you cope financially? If not you may want to consider critical illness cover.  

Critical illness cover is designed to pay out a lump sum, which could be used to help pay off your mortgage or cover bills if you are diagnosed with one of the critical illnesses specified by your insurer.

6. You plan to do it one day...

One reason you have not bought life insurance so far may be that you are planning to do it tomorrow, or the next day or sometime after. One day you will get your life sorted. Why not make that day today?

7. You're Batman

Batman doesn't need life insurance, he's Batman. And he's a billionaire. You're not Batman. Conclusion: you may, in fact, need life insurance.

Still not sure if you need life insurance? At Compare Cover, we give you the tools to help find the right insurance policy for you, including detailed life insurance guides and an impartial life insurance comparison tool. If you're ready, compare life insurance quotes now.


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