3 Really Good Reasons NOT to Get Life Insurance
Looking after your financial future, making sure you don’t leave your children without a home, protecting your loved ones from an uncertain future, paying the mortgage upon your death, leaving a legacy, protecting against inheritance tax – these are all reasons to get life insurance, but what about the other side of the argument?
What about reasons NOT to get life insurance?
1. I’m young and have no children – why should I get life insurance?
If you have no dependants, no mortgage and no partner you share your life with then sure – life insurance policies seem like a big waste of time. After all, who are you going to leave the money to? The dog?
On the other hand – life insurance premium costs are set when you take out life insurance, which means if you take it out in your early 20s as a healthy, young person who doesn’t smoke and regularly attends the gym then you are looking at phenomenally cheap cover. Something as small as £6 a month could set you up with a hundred grands’ worth of cover (and it’ll still be that small when you do have a family!).
Sure – YOU don’t get to spend it, but it’ll save your parents from having to find enough money to pay for your funeral.
2. Life insurance companies don’t pay out anyway – it’s a big scam. Average life insurance payouts are way lower than they should be.
It’s true, there are situations where the life insurance isn’t paid out. In fact, almost 3% of all policies result in a disputed payment. That’ll be the greedy life insurance companies who care about the bottom line and not the people.
Or it could be that 97% of polices are paid out in full, and that 3% are fraudulent claims made by people who lied on their initial application to hide a long-term disease, their smoking habit or went the full distance and faked their death (true stories!).
When you are getting your life insurance quotes, make sure you tell the truth and don’t hide any information. This way, you will get accurate cover that will result in the important payout should the worst happen.
3. I’m not going to die – what are the benefits of life cover for me?
Ah, immortality! That one we have no argument against. Then again, even Superman has his kryptonite so please do be careful!
How does life insurance work in the UK, then? What type of life insurance do I need?
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