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It's Your Money  

Don't want life insurance?

Is there something stopping you from protecting your loved ones?

Have you convinced yourself that you really don’t need life insurance?

Maybe you’re right and you don’t need this important coverage. Let me help by providing you with five more reasons not to buy life insurance (and why they don’t make sense):

  • You don’t have any kids – While having children is the No. 1 reason for many to set up life insurance, the lack of them doesn’t automatically mean you don’t need coverage. Many people have a spouse or other family member who is reliant on the income they earn and they would be put into a tough financial position if you were to pass away unexpectedly.
  • You think it’s too expensive – False concern over the cost of insurance is the top reason why people don’t set up life insurance. A recent survey found the average consumer estimated coverage at five times its actual cost. This is partly the fault of the insurance industry who try to push expensive permanent policies onto people who only need a cheap term insurance plan.How cheap is it? A $500,000 life insurance policy for a 30-year-old female is only $20 a month.
  • You’re too young and healthy – Nobody is invincible, and an accident can happen at any time. If anyone depends on you to make ends meet, you should be considering insurance now. As an added bonus, someone young and healthy will qualify for great rates and be able to lock them in now for as long as they’ll need the coverage.
  • You don’t know where to start – Almost half the people surveyed said that their lack of understanding about insurance was the main reason they hadn’t set any up. There are vast amounts of information online for those that want to do some research. Alternatively, a short chat with a professional financial planner can help create a customized plan.
  • You don’t have time to set it up – Applying for insurance used to be a long and onerous task, but it’s much easier these days. The entire application process can now be done online, and several insurance companies even offer e-delivery of the policy once approved. Setting up a policy is now easier than ever so a lack of time is no longer a valid excuse.

It is common human nature to avoid tasks that you know you should do and equally common to find excuses or reasons to support your behaviour. But just because you don’t want to set up life insurance coverage on yourself doesn’t mean your family doesn’t deserve it.

So enough of the excuses already, if you need life insurance go set it up! You’ll sleep better at night once you do.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.



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About the Author

Brett Millard is vice-president and a member of the executive leadership team at FP Canada, the national professional body for the financial planning industry. A not-for-profit organization, FP Canada works in the public interest to foster better financial health for all Canadians by leading the advancement of professional financial planning in Canada. 

He has worked in the financial advice industry for more than 15 years and is designated as a chartered investment manager (CIM) and is a certified financial planner (CFP).

He has written a weekly financial planning column since 2012 and provides his readers with easy to understand explanations of the complex financial challenges they face in every stage of life. Enhancing the financial literacy of Canadian consumers is a top priority for Brett and his ongoing efforts as a finance writer focus on that initiative. 

Please let Brett know if you have any topics you’d like him to cover in future columns ,or if you’d like a referral to a qualified CFP professional in your area, by emailing him at [email protected].

 



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The views expressed are strictly those of the author and not necessarily those of Castanet. Castanet does not warrant the contents.

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