Reasons to get (or not to get) life insurance

Published: 28th September 2006
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Why does someone not get life insurance
? These reasons why people don't get life insurance or delay can be simplified as:

You feel there's no reason or need to have it
Can't afford it (or don't want to spend the money)
Don't have time to take care of it delay until later.
You aren't confident about where and what to purchase
You don't understand how much to get or which kind of life insurance to get.

Let's address each of these points.

You feel there's no need or reason to have it. Sometimes this is true. You're 20 years old and single. Maybe not today. But let's say you have a family or loved ones that would be hurt financially if your income wasn't there. In that case you would agree that you do need it and want to have life insurance.

You feel you can't afford it. Money is tight sometimes but if it's tight now what would the financial situation be like for family and children? Get term life insurance for now. Prices are at an all time low. You can see how low prices are at an online life insurance site like where you can compare life insurance quotes instantly.

You don't have time to take care of it. Usually this comes from just not understanding how it all works if you recognize the importance of having it. People just don't like to deal with things they don't understand. It's not that hard. Try the education pages of or just start with something simple like term life where you own life insurance for a period of time at a fixed rate.

Where to go and what to get? Again, try it online and study on your own if you don't want to get "sold" or feel lack of understanding.

How much to get and what kind? The formula for how much is actually pretty simple. You should replace your income. Life insurance is really income replacement. As a rule of thumb, if you got 15 to 20 times your income as a breadwinner, you'd be doing well for your family. What kind? Term is inexpensive for now whole life lasts for life. Term will cost more later whole life doesn't go up in price and compensates for the "overpayment" with cash value.

Most important point: Make sure you take care of this important part of family financial planning. There are online resources to help make purchasing life insurance or term life insurance
easy for you.


Author, Neil Willner, owner of Life, Life Insurance Direct, provider of life insurance quotes and information, writes articles on life insurance, whole life insurance, and term life insurance for For more information, visit

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