Life Insurance, Do You Really Need it?

Are you one of those people who still wonder if they really need life insurance? I’m not an insurance agent nor an insurance expert, but my wife is a financial adviser. But one thing I know is, we need Life Insurance. If there’s one thing that my life has taught me over the last 5 years, is that anything can happen no matter how careful you are.

As an investment enthusiast, I often talk to people about life insurance and heard almost identical reasons why they are not getting life insurance. Most of them think that they don’t need it. Why? Find out below maybe that’s your reason too.

5 Common Reasons Why “I Don’t Need It”

  1. I’m too young and I’m healthy: I thought so too. Until I was diagnosed with Chronic Kidney Disease at age 23. Same thing with 8.6% of our population back in 2017 who died prematurely due to road accidents. Truth is, only God knows that.
  2. When I have more money: Increasing your earnings will take time. The problem is, as you grow old, you will have more responsibilities as well. Marriage, children, education, etc. In the end, you will never have enough money to secure yourself and your loved ones. Not unless you will consider it as a priority.
  3. It’s Just an Expense: Maybe you want to enjoy your life first and want to spend your money on things that will make you happy like shopping, travel, and eating out. But isn’t it more exciting to spend knowing that you have already set aside a portion of your income for your insurance and investment? Prioritize it.
  4. It’s Only for the Rich: Truth is, the rich don’t really need insurance because they have a lot of money. If something happens, they can just write a check and it’s done. But for us, we really need something to protect ourselves and our family in case something terrible happens like an accident or untimely death.
  5. I don’t Want Insurance Agents to Gain from me: That’s true, an insurance agent will definitely earn money if you buy insurance from them. But do you think it’s more important than having protection for yourself and your family? If that is really an issue for you, then ask your friends if any of them are selling insurance.

Prioritize It!

Bottom line is, learn to prioritize. For me, protection is more important rather than a gadget or a vacation, especially if you are a breadwinner or planning to have your own family in the future. I’m not saying don’t buy a gadget or take a vacation, but I hope you will prioritize protecting your income first.

The same goes for other investment instruments like Stocks and Bonds. I believe that It’s very important to have insurance first before getting into a more riskier type of investment.

But, FOOD and other necessities like medicine, rent, and other bills to sustain your present living are MORE IMPORTANT than protection. In general, we need insurance, but be sure that you will only buy what you need. Do not overspend on insurance. Or else, you will lose the chance to use your money for more profitable opportunities.