What Are the Consequences of Not Having Life Insurance?

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Explore nan sobering realities of not having life security and nan imaginable consequences it tin person connected your loved ones. From nan abrupt nonaccomplishment of income to lingering debts and nan request for crowdfunding funerals, this article sheds ray connected nan value of securing life insurance, moreover erstwhile facing obstacles for illustration procrastination aliases costs concerns.

Before I started penning successful nan individual finance space, I spent astir 8 years moving alongside my hubby successful a ceremonial home. My hubby Greg worked arsenic a mortician, and I was nan Director of Family Services. I learned truthful overmuch astir surviving and dying during my years successful nan mortuary business, but there’s 1 that stuck pinch maine — nan real-life consequences of not having life insurance. 

I intelligibly retrieve speaking pinch dumbfounded families who couldn’t judge their hubby aliases begetter (or woman aliases mother) ne'er had life security successful place. Some didn’t person capable money to screen final expenses for illustration nan ceremonial bill, and others confided successful maine they had nary thought really they would salary their bills.

This saddened maine greatly since I cognize first-hand really inexpensive life security tin beryllium — particularly if you’re young and healthy. After all, I’m a 40-year-old female and I presently person 2 word policies worthy $1 cardinal dollars that group maine backmost a expansive full of $53 per month. 

Why People Don’t Buy Life Insurance

The main logic consumers don’t bargain this important sum is elemental — they get engaged and forget. Most of america cognize we request life security successful spot during our moving years, and that’s particularly existent for those of america pinch kids. But it’s easy to fto life get successful nan way, and for nan acquisition of life security to upwind up connected a database of different to-dos that we ne'er get to. 

Not only that, but group don’t want to deliberation astir dying. I specifically retrieve a family I met successful nan ceremonial location who conscionable mislaid a hubby and begetter who wasn’t moreover 40 years old. In tears, his woman explained that he had told her he was going to bargain life security dozens of times, but that he hated moreover dealing pinch death.

He had a $20,000 life security policy done work, and he knew he needed more, but he didn’t want to look his mortality successful his free time. Unfortunately, his family paid dearly for that decision.

A last logic group don’t bargain life security is cost. The point is, word sum is truthful inexpensive that almost anyone tin spend it. People conscionable deliberation it’s expensive, truthful they awkward distant from taking nan adjacent steps. Life security is besides conscionable different measure to pay, and galore tin hardly support up pinch nan bills they have.

That’s astir apt why truthful fewer group person capable coverage. Here are immoderate statistic that should scare you:

  • Only astir 60 percent of Americans had life security successful 2022, according to LIMRA’s 2022 Insurance Barometer Study
  • Among those pinch life insurance, 1 successful 5 group cognize they do not person enough
  • Consumers surveyed thin to overprice life insurance; millennials successful peculiar judge that life security costs 5x nan existent magnitude for a policy

Consequences of Not Having Life Insurance

Based connected those statistics, not capable group person life security and those who do whitethorn not person capable sum to last. But, what tin this mean for your family? Here are nan main downsides you’ll look erstwhile you don’t bargain life security now earlier it’s excessively late:

Your Income Disappears

Income replacement is 1 of nan astir compelling reasons to bargain life insurance, and that’s particularly existent if you person kids. You don’t want your income to abruptly disappear, leaving your family successful nan lurch. However, this is precisely what happens erstwhile you dice without life insurance. All of a sudden, your family is near trying to screen regular bills and surviving expenses without your income.

That’s why galore experts propose buying astatine slightest 10x your income successful term life insurance coverage. This way, your family will person immoderate rate they tin usage to switch your income while they mourn and get backmost connected their feet.

Your Debts Don’t 

Your income whitethorn vanish erstwhile you die, but your debts surely don’t. With that successful mind, you should bargain life security sum that will screen awesome debts you person for illustration your location mortgage, your family car loans, and immoderate credit paper debt you have.

If you don’t bargain life security and you dice earlier your time, your family will beryllium near trying to screen each your debts without your help. It’s shameful to time off them successful this position — particularly erstwhile word life security sum tin easy beryllium purchased for nan value of a meal retired per month. 

Your Family Could Need a GoFundMe to Pay for Your Funeral

During my last years successful nan ceremonial industry, GoFundMe came about. I cannot show you really galore families came successful to scheme their services without immoderate money only to find that, no, nan ceremonial location wouldn’t fto them make payments. After that, they’d group up a GoFundMe and solicit donations from family and friends to salary for a service.

This ever made maine sad, mostly because families shouldn’t person to struggle aliases fundraise to salary for last expenses. I ever thought that, if only their loved 1 had a small-term life security policy, they would person been capable to grieve without nan added stress.

You Will Not Leave a Legacy

Finally, life security offers you nan chance to time off a bequest behind. This could mean leaving capable money to salary for assemblage tuition for your children aliases having a wide capable argumentation truthful your spouse aliases partner ne'er needs to activity again, paving nan measurement for them to enactment location and nurture your kids. When you person capable life security truthful your family is taken attraction of, they will ne'er hide it.

The other is besides true. Many whose loved ones dice without life security upwind up angry and resentful astatine their partner for leaving them successful specified a position. I cognize because I saw it pinch my ain eyes, and I felt their exasperation arsenic they tried to fig retired what to do.

Purchase Life Insurance nan Painless Way

Here’s nan thing: Buying life security doesn’t person to beryllium analyzable aliases stressful. I cognize because I person purchased $1 cardinal successful life security coverage and because nan 2nd argumentation I bought online didn’t moreover require a aesculapian exam. 

The acquisition of life security tin beryllium painless and accelerated if you scheme to bargain basal word coverage, and it tin besides beryllium importantly cheaper than you deliberation it would be. These tips tin thief you get nan sum you request without immoderate added hassle aliases stress.

1. Shop Around and Compare Quotes Online

First, you should perfectly shop astir and comparison life security quotes online, mostly because this is specified an easy task. A scope of online life security providers including Haven Life and Bestow make it easy to value retired a argumentation successful a matter of minutes online. 

To get a quote from Bestow aliases Haven Life, for example, each you request to proviso is your commencement date, your height, your weight, and your zip code. You don’t moreover request to participate your interaction accusation aliases your email to get a free quote pinch either company.

You tin besides cheque retired our guideline to nan Best Life Insurance Companies of 2023, which lets you publication reviews of each nan apical providers and comparison rates from aggregate providers successful 1 place. 

Whatever you do, don’t spell pinch nan first life security institution you travel across. Make judge you comparison policies successful position of their monthly cost, nan magnitude of coverage, and really agelong it lasts. Then, and only then, tin you cognize you’re getting nan champion deal.

2. Play Around With Coverage Amounts

You besides request to person a wide thought of really overmuch sum you want and need. We mentioned that astir experts propose buying astatine slightest 10x your income successful life security coverage, but it whitethorn beryllium prudent to bargain much word sum than you need. After all, there’s nary specified point arsenic having excessively overmuch life security successful place, but you tin decidedly not person enough.

You’ll besides want to determine really agelong you want your argumentation to last. Most word life security policies past for 10, 15, 20, aliases 30 years, letting you tailor your argumentation to your needs.

If you’re young and you person young kids, you whitethorn want a 30-year argumentation that will supply income replacement for your full moving life. If you’re successful your 40s and you scheme to discontinue astatine 55, connected nan different hand, you whitethorn consciousness comfortable pinch a argumentation that lasts for 15 aliases 20 years. There is nary “right” aliases “wrong” answer, but these are factors you should consider.

3. Look for Providers That Don’t Require a Medical Exam

According to LIMRA’s 2018 Insurance Barometer Study, half of each consumers opportunity they are “more apt to acquisition life security if priced without a beingness examination.” And, tin you blasted them? Medical exams require a humor draw, and you person to group speech clip successful your schedule for them to boot. It’s easy to procrastinate and ne'er bargain a argumentation erstwhile a aesculapian exam is required.

Fortunately, galore life security providers don’t require a aesculapian exam. Instead, they trust connected algorithms to find who is nan top risk, and who tin acquisition sum that originates correct away. The 2nd argumentation I purchased for myself came from Haven Life, and it did not require a aesculapian exam. 

I was successful my precocious 30s erstwhile I purchased this argumentation for $750,000, and I only salary astir $27 per month. I applied for this argumentation online and had sum nan adjacent day, and each without seeing a caregiver aliases facing nan dreaded needle prick.

The Bottom Line

Since you took nan clip to publication this piece, you are astir apt connected nan verge of buying life insurance. You already cognize you request it, truthful don’t fto different time spell by without coverage. You whitethorn not deliberation thing could hap to you successful nan adjacent week aliases nan adjacent fewer months, but life doesn’t ever spell arsenic planned. If you’re unlucky, your untimely decease whitethorn beryllium nary exception.

Take nan clip to get a quote for life insurance, and you’ll ne'er person to wonderment what your family would do if you died. Life security lets you proceed providing for them moreover aft you’ve near this Earth, and there’s thing much thoughtful and loving than that.