Without life insurance, your loved ones might be left in the lurch financially if you were to pass away unexpectedly. But despite the importance of having life insurance, many Americans go without it, and for reasons that really read more like excuses. Here are the top reasons Americans don't have life insurance, according to a survey by Ladder and OnePoll -- and why they just don't hold water.
1. It's too expensive
For 52% of Americans, the decision not to buy life insurance boils down to money. Meanwhile, in the aforementioned survey, the typical American spends nearly $1,500 a month on non-essentials like restaurant meals and entertainment, which, depending on the policy you buy, could be enough to cover your premiums for an entire year.
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Before you write off the idea of life insurance based on an assumption that it's too expensive, explore your options for a low-cost policy. Opting for term life insurance over permanent life insurance, for example, is a good way to reduce your costs, since term policies don't cover you for life and don't accumulate a cash value.
You can also keep your costs down by applying when you're relatively young and at your healthiest. Losing weight, for example, could reduce your premium costs substantially.
2. I don't think I need it
A good 17% of Americans are convinced they don't need life insurance. But here's the thing: You don't need to be wealthy to have a policy. If you have people who depend on you financially, or who stand to get hurt financially if you were to pass away, then you need that coverage. Period.
Imagine, for instance, that you're a stay-at-home parent who doesn't earn an income. You might think you don't need life insurance because you don't contribute financially to your household, but in reality, you provide a key service -- free child care. If you were to pass away, leaving behind a spouse and two kids, your spouse would then need to absorb the cost of child care on his or her own, which could wreak havoc on your family's budget. On the other hand, if you were to take out a modest policy for yourself, your family would have that added protection if the unthinkable were to happen.
3. I don't know what kind of policy to get
Navigating life insurance options can be tricky, so much so that 15% of Americans don't have a policy because they don't know which kind to get. The truth is that there are numerous life insurance guides on the internet, so you can read through them to better understand your options. Working with a trusted broker or financial advisor will also help, as that person should be in a position to steer you in the right direction.