Rather than simply dismissing the reasons why one would not want to buy life insurance, let’s take a closer look into some of these common concerns and the thought process behind them. We’ll also discuss ways to recontextualize these reasons and identify how life insurance may play a vital role in the financial security of those you care about.

“I Don’t Have Enough Time.”

Selecting the proper coverage can be a time-consuming process. It usually consists of a conversation with an insurance specialist, filling out paperwork, taking a medical exam and providing health histories for yourself and your immediate family. Understandably, this process looks intimidating and slow. After all, there are plenty of more fun and interesting things to do with your time.

However, just because something is time consuming does not mean that it is not worth the effort. Though it takes a while to get in place, life insurance can provide for those you care about after your death and helps give them protection from being unable to pay for the bills you once handled. Furthermore, once completed, you have the peace of mind knowing that you have done the work required to protect your loved ones.

“It's Not a Subject I Want to Discuss.”

Let’s be honest, no one enjoys talking about their ultimate passing and what that may mean for those you leave behind. Talking about mortality in general makes a lot of people uncomfortable. This can result in denial of this fact of life and can lead to inaction that may hurt your surviving loved ones.

Instead of focusing on your own mortality, try to work on recontextualizing why you are buying life insurance in the first place. What you are actually doing is providing for your loved ones and taking responsibility even when something unexpected happens to you. Buying life insurance means creating a positive financial impact for your family even after you pass away.

“I Don’t Know Where to Start.”

Applying for life insurance can seem complicated. There are many different types of life insurance with differing terms and premiums—not to mention selecting your beneficiaries and determining who should be the owner of your policy. The reality is that very few people know exactly what type of insurance they need, the amount they need and which strategy is right for them. This is the job of an insurance professional, and they have the expertise required to walk you through this process.

Finding the right insurance professional means that you have someone who can show you how to get started and can help you find a suitable benefit that fits your unique situation. Simply having someone that can answer questions plays a large factor in putting your mind at ease when thinking about life insurance. In the same way that you are not expected to know each intricate detail when needing surgery, you are not expected to know each aspect of life insurance when applying for it. The key is finding a good specialist to walk you through the process.

“I Have Other Expenses to Consider.”

It’s an undeniable fact that we all have plenty of expenses to pay each month and adding life insurance may look as though it’s just one more bill. However, it’s important to keep in mind that your loved ones may have a much harder time paying for those ‘high priority expenses’ if you pass away prematurely. By having life insurance, you are helping to ensure that your loved ones can pay for those expenses even after your passing.

When purchasing life insurance, take care that you are buying a policy that not only meets your needs but is affordable. If you have to make significant sacrifices frequently just to pay your life insurance premium, over time those sacrifices will likely become unsustainable. This may lead to you eventually not paying premiums, resulting in loss of coverage and ending up in the exact place from where you started.

The good news is that there are many types of life insurance available, and you should be able to find one that suits your lifestyle and budgetary needs. Term policies provide life insurance protection over a window of time, meaning if you die within this window of time, your beneficiary receives a death benefit. Due to this temporary nature, term policies are usually cheaper than permanent insurance policies.

Permanent insurance policies protect you over your entire life, provided you continue to pay the necessary premium to keep the policy in force. The permanent nature of these policies usually results in premiums that are higher than term policies. An additional benefit of most permanent policies is the cash value that accrues as you pay premiums on the policy. This cash value can be accessed through various means, but keep in mind that withdrawals may impact the death benefit of the policy. Finally, the cash value will continue to grow tax deferred as long as you continue to pay the required premium (based on current tax law).

Conclusion

As we’ve discussed, there are plenty of reasons for why someone would not want to buy life insurance. Whether it concerns the time necessary to apply, thoughts of one’s own mortality, or not knowing the process, these reasons are certainly understandable.

Nevertheless, buying life insurance allows you to support your family’s financial future even after you pass away. It gives you the peace of mind knowing that you have protection in place if you are no longer around. Having this process behind you means that you have taken an important step towards ensuring your loved ones’ financial security.

Your insurance agent or a financial professional like those with Busey Wealth Management can help you compare life insurance insurance policies and answer any questions. To find a Busey Wealth Management advisor near you, visit busey.com/wealth-management.

This is not intended to provide legal, tax or accounting advice. Any statement contained in this communication concerning U.S. tax matters is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties imposed on the relevant taxpayer. Clients should obtain their own independent tax advice based on their particular circumstances.

This material is provided for educational purposes only and should not be construed as investment advice or an offer or solicitation to buy or sell securities.

This presentation is for general information purposes only. It does not take into account the particular investment objectives, restrictions, tax and financial situation or other needs of any specific client.

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