Why People Avoid Life Insurance
| Reason | The Reality |
|---|---|
| Too Expensive | Cost is often overestimated by up to 300%; term policies are very affordable for most families. |
| Other Financial Priorities | Coverage can fit most budgets—even small monthly premiums provide meaningful protection. |
| Coverage Through Work | Employer coverage is usually minimal and may end if your job changes. |
| Already Have Enough | Most families are underinsured, with coverage often far below what’s needed. |
| Not Sure What to Buy | It’s common to be uncertain; Foxcove Financial can guide you through the options. |
| Just Haven’t Done It | Delaying leaves loved ones at risk—sooner is better, and eligibility is easier when you’re younger. |
| Don’t Want to Think About Death | Life insurance can support a range of life and legacy goals, not just income replacement. |
Many people agree that life insurance is important, yet a large number still do not own a policy. Recent studies highlight that more than 30% of U.S. households have no life insurance at all, and nearly half are underinsured—leaving millions of families at financial risk if the unexpected happens.
So, what keeps people from getting the coverage they may need? Below, we explore the most common reasons—and why they often don’t hold up to scrutiny.
Common Reasons People Avoid Life Insurance
- Too Expensive. Many believe life insurance is out of reach, but most overestimate the cost by hundreds of percent. For example, a healthy 30-year-old can usually secure term life coverage for around $160 per year—a fraction of what many expect.
- Other Financial Priorities. Competing expenses—saving for retirement, paying down debt, or even entertainment—often take precedence. Yet the cost of simple pleasures like coffee or streaming services can easily exceed the monthly premium for a policy that protects your family’s future.
- Coverage Through Work. Employer-sponsored policies are a good start, but are typically limited to one year’s salary or a flat amount. If you leave your job, coverage ends, potentially creating a gap. An individual policy remains with you and can be tailored to your needs.
- Think They Have Enough Coverage. Many assume their current coverage is sufficient, but studies show most insured families have less than $100,000—often far less than what’s needed to cover several years of expenses or protect young children.
- Uncertainty Over What to Buy. With many types and providers, the process can feel overwhelming. However, Foxcove Financial can help you clarify your needs, explain policy types, and recommend strategies that fit your unique situation.
- Just Haven’t Gotten Around to It. For many, life insurance remains on the “to-do” list—until a major life event or health scare prompts action. Taking care of it today means more peace of mind, and ensures your eligibility while you’re still healthy.
- Discomfort Discussing Death. Life insurance is about more than final expenses—it’s a flexible financial tool that can support education, estate planning, charitable giving, or even business succession.
Understanding these reasons helps highlight how small misconceptions or inertia can leave families exposed. Let’s break down these concerns in a clear summary:
| Excuse | Fact |
|---|---|
| “It’s too expensive.” | Term life can be less than $15/month for most healthy applicants. |
| “I get it through work.” | Work coverage is often not portable or enough for real needs. |
| “I already have enough.” | Most people underestimate how much is needed—consider income replacement, debts, and future costs. |
| “I don’t know what to choose.” | Foxcove Financial can simplify the process and help you compare policies. |
| “I’ll get to it later.” | Buying younger typically means lower rates and better coverage options. |
Action: Consider applying while you’re younger and healthier—rates are generally lowest and your insurability is highest.
Action: Supplement workplace policies with individual coverage that remains with you regardless of employment changes.
If you haven’t purchased life insurance or aren’t sure if you have enough, it’s never too late to review your options and take steps to protect your loved ones.
What If You Don’t Have Life Insurance?
Millions of U.S. households remain “completely underinsured,” leaving them at risk if something happens to a primary income earner. Life insurance may not be the answer for everyone, but for most, it’s an essential part of a sound financial plan. If you’re uncertain or simply want to see how coverage can fit your circumstances, now is a great time to start the conversation with Foxcove Financial.
| Annual Income to Protect | Suggested Total Coverage | Sample Monthly Premium (30-year-old, term) |
|---|---|---|
| $50,000 | $1,000,000 | $15–$20 |
| $75,000 | $1,500,000 | $20–$25 |
| $100,000 | $2,000,000 | $30–$35 |
Sample rates for illustration only. Actual premiums depend on health, age, product, and carrier.
Summary
While there are many reasons people avoid life insurance, most barriers are rooted in misunderstanding, busy schedules, or simple procrastination. Term life insurance is often affordable, easy to secure, and provides essential protection for families and loved ones. Reviewing your coverage periodically ensures you have the right plan for your current goals—and Foxcove Financial is here to help you make informed, confident decisions every step of the way.
Looking for Guidance?
If you’re ready to take the next step in planning your retirement with confidence, Foxcove Financial is here to help. We’ll walk you through your options, answer your questions, and help you evaluate solutions that align with your long-term goals. We specialize in insured strategies designed to protect and grow your retirement income. Call us at 609.807.8502 or schedule an appointment.