Life Insurance with Living Benefits

Why are people scared of getting life insurance?

August 16, 2021

Are you one of these people who are trepidatious about getting covered?

Don’t be! Whether it’s fear of cost, a doctor’s exam, or a family member wanting to off them to get their hands on the payout, these concerns are almost always based on flawed assumptions.

Let’s look at the three top reasons people are spooked about getting life insurance and put any ill-gotten fears to rest:

  • “The price is too high!” – This is the most common misconception about life insurance, and also a top reason people cite for not wanting to look into buying a policy. According to a recent LIMRA study, more than 50% of Americans overestimate the cost of life insurance by as much as threefold.  This widespread misunderstanding, along with prioritizing other financial needs, puts families at needless risk if a breadwinner were to die unexpectedly.
  • “I’m scared of needles!” – First off –seriously? You’d take a bullet for your family, but not a needle? Second, even if you are among the 25% of U.S. adults who suffer from trypanophobia (yes, it’s a real condition!) and can’t stomach the thought of being poked during an insurance medical exam, there is hope. In recent years, many life insurance companies have reduced or dropped altogether the requirement for a physical exam for life insurance policies under $1,000,000 or so. Good news: if you can’t bring yourself to do it, there’s a very good chance you won’t even be asked to!
  • “I don’t want to be worth more dead than alive!” – We hear this one from folks more often than you’d believe, and sometimes it’s hard to tell if they’re joking. If you’re worried about your family members wanting to off you to get their hands on your policy’s payout… well, wow. There’s more to unpack there than we have time for here. But here’s something: according to the Slayer Rule (not as cool as it sounds), if anyone murders you, they definitely will not be eligible to receive any benefit. Maybe a casual slipping of that tidbit into conversation around the Thanksgiving table will help foil any of your family members’ sinister plans and put your fears to bed.(Sheesh!)

Getting life insurance is a loving gesture to give yourself peace of mind and the ones you care about a safety net in case you can’t be there for them. This Halloween, don’t let flawed assumptions and murky reasoning stop you from doing what’s best for you and your family.

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October 21, 2021