Despite being an essential factor in many people’s lives, life insurance is not for everyone. Here are eight well-defined instances where life insurance is not worth the investment:
- You have no dependents, friends, or family to protect upon your untimely demise. In this case, disability and critical illness insurance are your best forms of insurance.
- You do not plan to get married and therefore you have no reason to lock in cheaper life insurance while you are young and healthy.
- You are incapable of being honest while filling out your insurance application. In this case, hiding your true medical/risk profile will likely nullify your agreement – so why bother paying premiums?
- You are wealthy and do not care how much income tax the government will collect when you pass.
- You are terminally ill with less than two years to live, the period before you can collect life insurance for seriously ill people.
- You have existing medical issues and guaranteed issue life insurance is too expensive to purchase.
- You possess a true indifference to human relationships. What happens after you go is none of your concern.
- You have no intention of dying.
In most cases, reasons to forgo life insurance is related to wealth, budget limitations, and pre-existing medical complications. As everyone’s personal situation is unique, it is important to speak with a professional to get an accurate assessment of the benefits of a life insurance policy.