7 Reasons People Don’t Buy Life Insurance

Life Insurance by Happy Mum Happy Child

My husband and I have life insurance.  When we bought our first house, we decided it was the best for us moving forward – in case something happened and we couldn’t afford to pay the mortgage.  Now that we have children, it is even more important for us to have this too – to ensure our family is covered in an emergency.

Here are the 7 reasons people don’t buy life insurance …

1. It costs too much 

In all honesty, life insurance isn’t that expensive.  It really depends on your life situation, age, how healthy you are, whether or not you’re a smoker, what type of life insurance you need, how much coverage you want, etc etc.   If you’re young, and healthy, it could cost as little as $20 per month.  The application process is designed to find out who you are and your current life situation.  To understand more about insurance premiums, watch this video from Sovereign:


2.  I don’t understand it, it seems too complicated

The application process is really thorough to ensure your premiums are correct. You don’t want to be known as a smoker when in fact you’re not – so the questions are asked now to make sure you’re adequately covered, and for the right reasons.

To find out what’s actually involved in the application process, starting with where to begin the conversation, Sovereign have put together this video:

Also, having a life insurance Adviser is a really great idea. They know all about insurances, and can act as your advocate when dealing with your insurer, or even help complete your application.  Find out more about how an Adviser can help you here:


3.  I’m healthy, so I don’t need it

If you’re healthy now, that’s fantastic!  However, our health may not stay the same as we get older, so it’s important to think about our future now.  If you do a simple Google search you can find hundreds of people who were once healthy who had an unexpected medical crisis occur and because they didn’t have Life Insurance, ended up in a not-so-great financial situation.

If you’ve got a family, a husband or wife, children, or anyone who relies on you for financial support, then you should consider at least some kind of Life Insurance in case something happens.  No one can predict the future, on any level.


4.  I have loads of assets so Life Insurance isn’t necessary

Having loads of assets is great, but if they are things like real-estate or a business, then they may be hard to liquidate to get cash if needed.  Life insurance provides you or your loved ones with cash when you need it, which would allow them to pay off debts that require immediate attention.


5.  My life is too busy to apply

I guess it’s like anything in life really – there always seems to be something more important to deal with – getting married, about to have a baby, etc.  However, as mentioned above, you don’t know what the future holds and anything can happen.  If there are people depending on you for income then life insurance should be a priority.


6.  I have more important things to pay for

That’s a difficult one, mainly because everyone has different things in their life that are “more important” to pay for than Life Insurance.  However, once you really understand what life insurance is for, and how affordable it can be, you may change your mind.


7.  I’ve heard the claims process is intimidating

Just like the application process, the claims process needs to be thorough to ensure you are correctly compensated (if necessary).  To find out more about the process and what is involved, watch this great video from Sovereign:


Life insurance, in my personal opinion is important to have, if you can afford it.  It can be complicated but Sovereign are here to help simplify things.  To find out more about Sovereign’s Life Insurance, and to get an obligation-free quote, visit their website.

Do you have life insurance?  

This post was made possible thanks to Sovereign.


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