Why NOT to Buy Life Insurance

There are a number of reasons:

  • It won’t happen to me—I’m not going to die anytime soon.

  • I have more important financial priorities.

  • I don’t want to think about dying!

  • I’m healthy. I can get it later.

Did you notice the one word common to all of these reasons? You don’t buy life insurance for “I.” In reality, you buy life insurance because you love someone else.

Frankly, I challenge anyone who says anything different. Most people need life insurance to protect their family. Notice I didn’t even mention a certain age most people need life insurance? Why? Because several issues, which life insurance can address, are not age related or specific:

  • Replace lost earned income

  • Pay off debts

  • Replace Social Security income (which will be lost if you are married and both receiving)

  • Replace pension income

  • Equalize inheritances and keep peace in your family after you are gone

  • Buy out business partners

  • Protect the family farm, ranch, or business

  • Replace a key employee

  • Retain a key employee

  • Family succession solution for the farm, ranch, or business

  • Pay taxes

  • Replace lost assets

Maybe the one reason you wouldn’t need life insurance would be if you had the cash (not assets) to pay for those issues that can and will arise. But even so, why pay full price when life insurance can do the same thing for pennies on the dollar?

Consider these two questions:

  1. If you died today, what would happen to your family, your business, or ranch? How would everyone you love be affected?

  2. What if something happened today that left you uninsurable for the rest of your life? Can you foresee a point in your life that your loved ones would be financially crippled because you didn’t have life insurance?

A couple weeks ago, we heard a story about a young couple who just bought a house… and the husband dropped his life insurance due to affordability. When we buy our first house, most of us think we’re still young and invincible, right? But what would happen to his family if he died? Is the financial devastation they might experience really worth the risk?

September is Life Insurance Awareness Month which may have caused some to ask the question why.  Why a whole month devoted to bring awareness to one topic?  Pause for a moment to think about a month in relation to your situation along with those you love and care about: can you see why life insurance and its future impact on their lives is so important?  Just imagine those you care about in the same situation with two very different options.  Option one has no life insurance proceeds.  Option two has life insurance proceeds. 

Don’t hesitate. Get the Life Happens App (iOs/Android) today to explore what your family needs you to do! If you have questions, we’re here to help.

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