The fact and fiction of life insurance laid bare.
After interviewing hundreds of parents about why they do or don’t buy life insurance, some familiar arguments started taking shape among those choosing to go without.
Are you currently without coverage? Find the argument that best matches with your philosophy and learn the truth.
The good news is: You’re not alone. The better news is: It’s never too late to purchase coverage.
1. “I can’t afford it right now.”
Coverage at Fabric starts at just $6.00 per month. That’s $100,000 in coverage, for less than the cost of a Netflix subscription.
2. “I’m not going to die any time soon.”
When you’re 25 - 44 accidental death, not illness, is actually the single largest cause of death*. Unless you have a crystal ball, it’s 100% unpredictable. 1
3. “I get it through my work.”
People who say this may not realize how little coverage their work actually provides. If your work offers life insurance at all, coverage usually doesn’t exceed $50,000 and it expires when you leave your job. If you intend to buy coverage when it expires, that’ll put you back at square one, which can be costly (see #4).
4. “I’ll buy life insurance tomorrow.”
Be careful with that. Life insurance premiums increase as you age. Let’s say you wait 5 years before applying - depending on how old you are when you first made that choice, you could wind up paying significantly more if your health hasn’t declined.
5. “My parents will take care of things if something happens to me.”
Makes sense. They raised you after all. But that was a long time ago. Even if they’re up to the physical challenge, odds are they haven't included this in their own financial plan.
6. “All that money is wasted if I don’t die.”
Term life insurance isn’t meant to be an investment, it’s about mitigating the most critical risk to your family. Think of it like this; Is homeowners insurance a waste if your house never burns down? Of course not. Knowing there’s a plan in place to take care of the huge costs that would come with an unexpected calamity can help put your mind at ease and give you a sense of confidence.
7. “I can get a better return investing the money.”
The purpose of life insurance is to offer financial protection to help take care of your family’s immediate and future needs in the event that you unexpectedly pass away. Once your policy is in-force, you’re covered for the full coverage amount. Fabric Instant costs as little as $6 for $100,000.
8. “I just don’t have the time right now.”
Signing up for some types of life insurance policies takes way more time than you’d expect; often weeks from the time of the first quote until the policy is actually signed and goes into effect. But technology is changing that fast. With Fabric’s Instant policy, for example, the amount of time from the start of the application until the coverage actually starts can be measured in minutes. Just about 2. Really.
9. “I don’t have an income that needs replacing.”
Ah, the swan song of the stay-at-home parent. You figure you’re not a bread-winner, so no bread needs replacing if you’re taken out of the equation. Let's think this through logically. Your partner needs to keep working to keep the family afloat. If you die unexpectedly, all of the chores you used to do (everything from watching the kids to running errands) now falls on them. They’ll likely need help, lots if they’re continuing to work, and that help costs money.
10. “I don’t trust life insurance companies; they don’t pay anyway.”
Check whether the insurer you're considering is highly rated, based on their A.M. Best rating. Top ratings indicate an insurer's financial strength and ability to meet its ongoing insurance policy and contract obligations. Fabric’s policies are issued by Vantis Life Insurance, rated “Excellent” by AM Best.