5 Reasons Why I Don’t Own Life Insurance

1.      I’m a stay-at-home Mom.

Don’t sell yourself short. In 2012, the national average salary equivalent was estimated at $113,000 for stay-at-home moms. Stay-at-home moms are the most valuable family asset and should be adequately covered. You are everything from chauffeur to chef to janitor for your family and if something happened to you odds are your family would have to pay for your replacement. Daycare and housekeeping services are just a few things that may be needed in your absence.

2.      I can’t afford it.

This is a common misconception that many people fall victim to. While there are policies that are more expensive than others, the price of term life insurance has gone down over the last 10 years. The truth is you can’t afford NOT to have life insurance, especially if someone depends on you.


3.      I have it through my job.

Many people have life insurance through their employer. While this is a good thing, what most people don’t realize is that employer plans are guarantee issue and the face amounts range from $15,000 to $50,000. This is nowhere near the amount of coverage the primary wage earner needs. Also, it can take a lot longer to receive benefits from a group life insurance policy. In some cases you may have to go through your Human Resources manager or your former employer to get what you need.

4.      My spouse will remarry.

This is an assumption many people make when in actuality, many are forced to remarry for financial stability. For example, according to a survey done by Columbia University’s School of Social Work in 2006, of the hundreds of firefighters that were killed in the 9/11 attacks, only 15% of their wives were remarried five years later. Many of these women had life insurance and settlements which allowed them to proceed in life without financial hardship. 

5.      Life Insurance is not a priority.

Many people list their top priorities as paying off debts, paying for children’s college tuition bills and saving for retirement. While those are high priorities, they assume you will not die. So think about this, if you or your spouse were to die, would the surviving spouse be able to pay the bills and support the household? When you look at it this way, there are few things that surpass the need for life insurance, especially considering how affordable it is. 

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