Why You Should Not Buy Life Insurance
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I Plan on Living Forever
Good luck! if you actually live forever, you were 100 percent correct and life insurance, or at the very least term life insurance, is not for you. If you bought a permanent policy that provides living benefits, you could take advantage of those during your everlasting immortal life. To most logical people, this is not a real challenge.
Buy Term and Invest the Difference
This is against specifically buying whole life or any other type of permanent life insurance policies.
The reasoning behind this statement is that, at least according to those who make this argument, first and foremost most people only need life insurance during their working and child-rearing years.
Additionally, the cost of a permanent life insurance policy is usually between 5 and 15 times the cost of a term policy.
Therefore, what they say you should do is to take the amount you would have spent on a permanent policy, buy a term policy, and use the rest of the monthly amount to invest in securities.
The reason why whole life insurance is bad, according to this team, is due to the low projected return.
If the market performs well, they may be right, provided that you dont actually have a need for a death benefit once you retire.
Even according to these people, you should still buy a term life insurance policy. Here at Sproutt.com, we would be happy to help you obtain a term policy easily.
Life Insurance is a Waste of Money
If you outlive your term policy, then you were correct. It will end up being a complete waste of money, and this is why some claim that term insurance is bad. However, by the same token, if you have homeowners insurance and never suffer from a flood, fire, or earthquake, would you be dissapointed? If your car insurance never had to payout a claim because you never got into an accident, would you be upset?
Term life insurance is similar to buying an option against your life, and, hopefully, youll never need it. Not only that, statistically your term life insurance policy will never payout, hence the low premiums. In the case when it is needed, however, if the proper protection is not in place, it can be devastating.
My Family Will be Fine
Maybe, if your spouse is employed, children are grown, and debt is all paid up. However, if all that is not the case, or even if it is, no expenses arise due to prolonged sickness prior to death, or your family can continue living as they did prior to the death of their dear loved one, life insurance is not needed.
In many cases, this is not the case, thus life insurance would be a very good idea.
I Hate My Family
You probably should not get life insurance, definitely not a term policy anyway. Possibly a permanent policy for the living benefits part, but even then, youre likely to be better off with a regular investment.
Insurance Companies are Super Profitable
And? They figured out the game. That doesnt mean you dont need their services. Would you not buy a BMW or Mercedes because the car company is making money?
I Dont Trust My Spouse
No problem. You still love your kids, no? Make them the beneficiaries.
I Cant Afford the Premiums
Unless youre very ill, a small term policy should not cost all that much monthly. Check out your quote on Sproutt.com before giving up hope completely.
Im Too Busy
At Sproutt.com, you can get a policy in under 15 minutes. Check it out next time youre waiting in line for your coffee tomorrow morning or while youre waiting for the train on your way home.
FAQs
Do you really need life insurance?
Probably, if you have anyone at all who depends on you.
Is life insurance a waste of money?
If youre buying term, hopefully it will be because, ideally, youll outlive the 30 or so years. If youre buying a permanent policy, its definitely not a waste. It may not be the best return in the world.
Should I get whole or term life insurance?
That depends on your individual goals, finances, and many other factors. Reach out to an advisor at Sproutt.com to assist.
What are the disadvantages of life insurance?
The main one is the premium.
What are the disadvantages of whole life insurance?
The high premiums and low relative returns when compared to the market at large.
What are the pros and cons of term life insurance?
You get a lot of insurance for a low premium, but it only lasts for a certain amount of time, so youre likely to outlive it.
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