Life Insurance Procrastination & the Cost of Waiting to Apply in [2024] + YouTube Video
How to prevent costly life insurance procrastination is a lesson most people need to learn more about. A significant number of consumers who bought life insurance in the past have postponed applying for it, resulting in higher premiums or no coverage at all. When it comes to buying life
insurance, time is money.
So the question of why people procrastinate when considering purchasing life insurance for their family has been a subject of interest since life insurance was first introduced.
According to modern statistics, over 67% of life insurance shoppers consume months of their time kicking the proverbial tin can around and never apply.
In many cases, they may finally decide to apply after a friend or family member’s death gives them the final push to pull the trigger and submit an application.
The longer a person waits to apply, the more costly a new policy will be. We will review these reasons and find solutions to this common problem, so please read on. Life insurance procrastination is very costly.
Table of Contents
Top 10 Reasons Why People Procrastinate Buying Life Insurance:
1. I Don’t Feel Comfortable Speaking With Sales People
This is a typical negative experience first created when talking to car salesmen which I believe we have all experienced. This may sound a little intense, but most people generally fear salespeople. If you walk into a big room where a party
is being held with fifty people, for example, and you are informed that a life insurance agent and a police officer are in that crowd.
Who would you walk up to talk to? It certainly would not be the insurance agent or the police officer.
People have a natural fear of most salespeople before even giving them a chance to know them. In this case, the guests at the party would worry about the insurance agent trying to sell them insurance.
The police officer would try to find some reason to investigate them for a possible crime they may have committed.
Not everyone thinks this way, but many do. It’s a shame because this country has thousands of knowledgeable and ethical insurance agents who will provide respect and excellent service.
If the family’s main earner dies unexpectedly without securing life insurance, it brings about a financial calamity. In our high inflation economic situation, it could mean financial disaster.
2. I’m Confused With All These Plan Designs and Options
An insurance agent’s job is to educate clients and answer all their questions. An applicant should always fully understand what they are applying for.
It is easy to become confused with all the various well-known life insurance companies and policy designs available. Knowledge of all the top companies and what type of insurance to buy is virtually impossible unless you work with these products daily.
This is where independent insurance agents come into the equation. They can analyze individual needs and budgets and recommend an excellent product to fit their client’s needs quickly and easily.
The insurance agent will perform most of the work in applying for term life insurance. Normally the applicant has to answer basic life insurance application questions.
3. I Don’t Like the Idea of Adding Another Monthly Expense
The key is to purchase life insurance with a premium you can easily afford, and paying your premium should never be a financial burden.
Many people procrastinate when contemplating the purchase of a new policy because they don’t know if it will fit into
their monthly budget of rising expenses due to inflation.
The main concept to remember is to purchase what you can comfortably afford. The last problem you need is canceling your policy because you cannot afford it.
Life insurance “needs calculators” often generate a number recommended to cover all your expenses if you pass away. Most of the time, this will be much higher than what you can safely afford each month.
You can view instant life insurance quotes with our quote engine to see for yourself.
The longer you put off buying life insurance, the higher the cost will be. If a severe health condition becomes evident, your chances of buying a new policy may become impossible due to a decline by the underwriting department that reviews your application.
4. We’re in a Terrible Economy With High Inflation
Purchase what you can afford so your family has some financial protection. You can always increase your coverage at a later date. Life insurance procrastination commonly stems from having financial issues.
Whatever you are trying to purchase in 2024 will be a challenge with the horrendous
economy and massive inflation we are forced to live with.
With no end in sight, everyone is financially strangled by high prices, from gasoline to food on our table.
You can now apply to a carrier with the lowest rates and only apply for a face amount and a term period that will produce premiums you can afford. The shorter the term period, the lower the premiums.
The same holds for the face amount, otherwise known as the death benefit. The lower the face amount, the lower the premiums. Being a little underinsured is better than not having any life insurance.
5. I Probably Will Be Declined Due to My Medical Conditions
Many worry about being declined or their rates increasing due to their medical condition.
People will often believe before even talking to an agent that they will probably fail to qualify for coverage due to pre-existing medical conditions. Most of the time, these people can be covered and have very affordable premiums.
We work with over 40 life insurance companies and choose the most applicable insurer to fit an applicant’s medical condition. It is human nature to worry about something without consulting a professional.
This holds for people with hazardous occupations and dangerous sports, which can increase a policy premium. Our service to our clients offers free 5-minute medical pre-screens, taking all the guesswork out of trying to guess at a premium or what health classification an applicant will be placed in.
6. Life Insurance Is Just for Older People
Life insurance is for anyone with financial obligations, regardless of their age. It’s common to see people use their age to support their history of life insurance procrastination.
Purchasing life insurance is important for a person of any age if they have financial obligations, or if someone else will inherit their assets if they die. This would include any financial liabilities such as mortgages, car loans, credit card debt, college tuition, and even an inheritance tax.
Many people make the common mistake of waiting and eventually applying for life insurance in their sixties and seventies, when the premiums are very high and at a time when medical conditions appear as they get older.
At this point, buying life insurance could become impossible, and the cost may be more than they can afford. Buying life insurance when you are in your twenties or thirties could be the best decision you could make.
I see people trying to scramble to buy affordable life insurance every day after waiting far too long. At this point, many get frustrated, give up on the idea, and then leave the grief to their dependents after dying.
7. I Don’t Like Thinking About My Death
Our death can come anytime if we are young, old, healthy, or very sick.
Most people do not like thinking about death, but unless you find a way to stay alive forever, you should think about it sooner rather than later.
If you want to think about it later, you may find yourself joining the statistics of men and women dying before they saw 40 years of age, which is 31%.
Many people who drag their feet buying life insurance will pass on their debt and financial burdens to their dependents. It is possible that your dependents already have enough financial debt without adding any more.
Americans are mostly credit monsters who keep burying themselves with credit card debt, and the statistics worsen yearly. The number of people filing for bankruptcy today is rising like a rocket.
A poor economy is one of the reasons for the rising number of bankruptcies.
8. I Am Still Very Young & Healthy
Young people with financial obligations can experience health issues and fatal accidents. Purchasing life insurance when you are young will guarantee low premiums.
Anyone who states they are young and healthy and do not need life insurance knows this is a very poor excuse. A severe
medical condition or accident can trigger death at any age.
If a person is young and healthy, now is the time to buy life insurance which will be available at an extremely low cost. Life insurance is dirt cheap if you are young and in good health.
Unfortunately, about everyone starts young and healthy and never gives it a second thought. But as the calendar pages start turning, your youth and beauty will eventually become a memory.
The natural aging process is what everyone has to learn to deal with, but just like they say, you are only as young as you feel.
9. I Don’t Like Taking Medical Exams
This is where No Medical Exam life insurance comes in. Physical exams and visits from a nurse are eliminated.
I don’t know anyone that likes taking medical exams either. This is another classic excuse some people use. They will go to their doctor’s office for annual exams, but they don’t like taking medical exams if it is related to applying for life insurance.
This may be true for some people; if it is, they can apply for no medical exam life insurance eliminating the need for a medical exam or a blood test. Many people experience life insurance procrastination because of their fear of blood tests.
10. Let My Family Worry About Paying the Bills Once I’m Gone
Believe it or not, but this is a common response with 38% of Americans having this philosophy, according to a recent study. They feel that since they will not be around, their surviving family members can bear the burden instead.
The loss of a breadwinner’s income would be devastating. This could change the family’s future for many years to come and this happens on a regular basis in the United States today.
In most cases the family has to move to a cheaper place to live in a different town and find new schools for the kids. The plans of the children going to college means just getting a job.
Life insurance procrastination can leave a scar on many families that now have a sudden loss of financial means.
Life Insurance Procrastination & Its Financial Consequences
Surviving family members could face a terrible financial future which could have been easily prevented with the purchase of low-cost term life insurance.
Many people don’t fully understand what will happen to their families if they have financial obligations and don’t have an affordable life insurance policy to cover their debt.
The impact on dependents can easily change the course of their lives forever.
I am sure we have all seen a family that had the loss of their husband and father and did not have any life insurance to keep the family living in their usual way of life after the death of their loved one.
The result can be devastating; the bad part is that it’s too late to do anything about it. Life insurance procrastination can lead to many hard times for family members.
Substantial Expenses for Dependents Without Life Insurance:
Home Mortgages:
Approximately 65% of American homeowners have a hefty mortgage to pay each month, come rain or shine. If the homeowner dies without sufficient coverage to cover the mortgage payments. The lending institution will foreclose on the mortgage, and the dependents will be forced to leave their home.
Life insurance procrastination when you have a home mortgage is usually the number one most life-changing event.
This creates severe mental hardship for the family, especially young children. This type of tragedy can leave a mental scar, branding the children for the rest of their lives.
The transition to a new and cheaper place to live will usually be a significant step down in the quality of their lives.
Car Loan Payments:
Statistics show that 38% of young families have two car payments, one each for both spouses. Today’s car payments average over $600.00 per month. Like home mortgages, if the payments are not made, the loan company will be right around the corner, ready to repo the vehicles.
If the breadwinner dies without life insurance, his or her family could lose their home and vehicles within sixty to ninety days. This mental impact would be very hard to accept, especially after one parent’s untimely death.
Life insurance procrastination with one or two car payments each month is a recipe for financial disaster.
Childcare Expenses:
Anyone with kids will quickly understand how many expenses come with caring for children. Everything from clothing, medical care, food, school-related expenses, cell phones, and allowances. Expenses never end, and costs keep rising, especially in today’s brutal inflationary market.
College Tuition:
College tuition with a severe cash flow problem usually means no college education period unless a son or daughter is smart enough to get a scholarship. They may have to attend a local junior college, but a complete education at a major university is usually out of the question.
Life insurance procrastination changed many young people’s lives when their father died, leaving no life insurance.
A study reveals that 38% of individuals without life insurance expressed no concern or regret towards their survivors having to handle their financial obligations after their passing.
Buying a New Policy on a Budget
Every day, Americans are getting brutalized with suffocating expenses such as gas, food, rent and mortgage payments. Most families worry about taking on other expenses, such as purchasing life insurance.
The best way to buy the coverage you need to protect your family is to buy low-cost term life insurance and apply for a shorter term, such as five or ten years.
In a situation where you may need a twenty-year term policy or longer, your budget may not allow it at this point in time. You can also reduce the death benefit to a more affordable amount.
Current policyowners can always re-apply when the economy improves and apply for a longer-term period and a higher face amount. This is not what I would typically recommend to people, but it will provide financial protection instead of having no protection whatsoever.
What Is No Medical Exam Life Insurance: YouTube Video
If you are looking for a simple and easy way to apply for life insurance, this is it:
Our Final Thoughts
Eliminate life insurance procrastination and find out how affordable a term policy is and how simple it is to apply with our modern application systems.
If you need life insurance, apply as soon as possible, so you don’t have to pay more than you have to. Waiting will only increase your premiums when you finally do decide to apply.
We represent over forty of the most competitive life insurance companies. You can count on us to help you secure the most competitive rates you’re qualified for. We are available seven days a week to answer any questions you may have.
All the best,
Jack Venturi
If you have any questions, please don’t hesitate to call us at 815-390-7545 for a prompt response. We’re here 7 days a week.
