11 Reasons People Don’t Buy Life Insurance

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  • Post last modified:October 17, 2019

Have you thought about it? Do you know the reasons why people do not buy life insurance? There is quite a large number of people who do not buy life insurance and for different reasons.

As much as life insurance is considered as a good thing, not everyone takes it. Different people will have various reasons. They are worth knowing.

Here are the Reasons People Don’t Buy Life Insurance

Considering It an Expensive Option

Many people who do not buy life insurance consider it as being expensive. When they look at the amount of money for premiums they are expected to pay per month, they feel it is so high. However, too many people think that life insurance should be much cheaper.

In the real sense, they would be happy to buy one if the premiums were low. This idea cuts across all types of policies.

Failure to Qualify

Life insurance is not as simple as many people may think of it. It is not something that you can walk into the office and take without other factors being considered. As much as you may be in a position to buy the cover, you may be rejected.

Although these are very rare cases, there are cases where people are rejected. Insurance companies are very serious about who they sell life insurance, to make sure that they do not increase their risks. If your death risks are very high, then you may be rejected for a life cover.

Other people, when they are rejected for an option they dearly wanted, then they do not bother to check other different options and rather leave it at that.

Other Financial Obligations

Have you found yourself in a situation where you have to make choices? You have money, but you cannot satisfy yourself with everything. It happens a lot.

This is one of the reasons why people do not buy life insurance. It is according to data that was collected from people in their 20’s and early 30’s. The majority of these people claimed they had many other financial priorities that would not allow them to buy life insurance.

To many of them, life cover policy is an issue to do with death. They would rather take care of their current needs now other than planning for what will happen after their death.

I Do Not Need a Coverage

Why do I need a life insurance cover when I am in my 20s and 30s? I am not close to dying.

Since it is a cover whose benefits are mostly focused on your death, they feel that it is not worth it. When you are healthy, you are not close to death and it is not of any use.

No Kids

It is a common reason for many people who do not have any kids as their beneficiaries. The majority of life insurance policies benefit kids as beneficiaries.

As a result, so many people who do not have kids feel it is a waste of money to take a cover that has no one to benefit. They would prefer to use the premiums money to do useful things for themselves.

This is not a case for just young people but also older people who do not have any kids.

I Will Not Get Benefit Directly

Here is another reason why people do not buy life insurance. To many people, it is a type of program that will mostly benefit other people once you die. It is a reality.

Irrespective of there being cash value for whole life insurance, many people feel that it is something that will not benefit them directly. As a result, it sounds like a very difficult work struggling to pay premiums for a program that will benefit other people once you are dead.

I Do Not Know What to Choose

Life insurance has so many policies. As a result, there is a need for someone to clearly understand how every policy works if you want to take a policy that will help you.

To many people, that is a difficult task. Since they lack information about various policies, they can’t take the policy. They do not know which one is better for them and why.

I Have Enough Wealth

When life insurance agents tell you to take life insurance, they tell you it is crucial as it will help your beneficiaries once you are dead. As a result, many people ask themselves a question of what if they have enough wealth to leave their beneficiaries.

You have a lot of money, you have educated your children, they have created their wealth, and you have enough property to leave them. What is the worst thing that could happen?

Many people feel that they have enough wealth to offer their beneficiaries a better life even after their death. As a result, it feels like a waste of money taking a life insurance policy.

My Job Life Insurance is Enough

There are so many companies or employers who offer life insurance cover for their employees. In that case, for many employed people, it is a very easy option to work with. In case of your death, your employer will also leave something for your beneficiaries.

Would you still take an additional life insurance policy and pay very high premiums?

Probably no.

In that case, it becomes tough to buy a life cover. This is where you will be required to pay premiums for 20, 30 years, or the rest of your life. As a result, they prefer remaining with the employer’s insurance.

You are Healthy and Strong

You are a very young person, strong and healthy, eating well, active, and many people like you. What is the worst that could happen?

Are there even chances for you passing on?

This is one of the common reasons you will find people who are strong and energetic. To them, life insurance is for weak, dying, or older adults who think they are about to die.

If you are feeling so alive, then you do not see any need to take a life insurance cover. Many of these people will prefer to take life insurance coverage once they are older. By doing that, they will take care of any problems that will come with old age.

However, we can’t stay what is going to happen in the next minute. You should reconsider this.

Lengthy and Confusing Process

Do you think life insurance is a lengthy and complicated process? You may not feel the same, but some people do.

If you are a person who has several life complications such as health risks, then you will find life insurance application and processing lengthy and confusing. Many insurance companies must conduct a medical exam before providing you with the cover.

Even in cases where there is no medical exam, you will be interviewed, and several questions asked. This is one of the things people find lengthy and annoying.

Other than that, people find the whole process of paying premiums, cash value, and types of policies a confusing issue. As a result, many people opt not to take a life cover.

Is It Okay Not to Take a Life Insurance Cover?

As much as many people will have different reasons for not taking life insurance, it remains a very important decision to make. There are so many benefits that come with life insurance that are worth going for.

Some of the things that you may miss out on not taking life insurance may include;

  • Helping your beneficiaries deal with large hospital and other bills burden. This is a case, especially for ailing people. When you die, you might die in a hospital and with huge bills. You do not want to leave your beneficiaries with the burden of paying the bills when death benefits would have covered them.
  • Take care of your children’s future life even when you are gone. When you have kids, life insurance is essential. You cannot predict what will happen towards your death. However, life cover is a sure way of leaving something to help in giving your children a better life.
  • You will miss a good chance to help you sort your bills in case you are sick. Whole life insurance, it comes with a cash value you can use to deal with your bills.


As much as a life insurance cover comes with so many benefits, it is not a must to take it. In some cases, you can choose not to, and there is nothing a big deal that will happen. If you feel that you do not need the benefits, then it is okay not to take one.

However, it is essential to consider all the options. Ensure that you consider both sides. How much you are losing and how much you will benefit from taking life insurance, then you can make a decision. Talking to an expert can also work very well in helping you make the right decision.

Linda Chavez

I'm a burial & senior life insurance expert, independent agent, Founder & CEO of Seniors Life Insurance Finder. I have been working in this sector since 2004 and established my own company in 2014. I have a team of seven members, and we are trying hard to share the knowledge we've gathered. We know how difficult often it is to find an affordable policy. Hence, we are doing our best to help you.