Why People Avoid Life Insurance

📌 In This Blog

Even educated professionals who plan everything else in life completely ignore term insurance. The answers reveal fascinating patterns in how we make financial decisions – driven by fear, denial, and psychology rather than logic.

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Namaskar! Let's talk about something most educated, successful people avoid – term insurance.

You will find engineers, doctors, managers, business owners who have planned everything meticulously – their education, career, home, children's future. Yet when it comes to term insurance, they either don't buy it or delay for years.

"The best financial decisions are not made by thinking – they are made by accepting our fears first."

💰 Why Do People Avoid Life Insurance?

Even today, when life insurance is affordable and necessary, educated professionals avoid it. Why?

The answer is psychological, not logical. Most people who avoid insurance tell themselves one of these: "I'm healthy, nothing will happen to me," "I'm young," "I'm earning well, my family doesn't depend entirely on me," "I'll buy it next year," or most common – "I don't want to think about dying."

But beneath these reasons lies something deeper – loss aversion psychology.

💡 My Take: Insurance is not about death or morbid thinking. It is about protecting the people you love from financial hardship.

🧠 The "Money Back" Psychology

When people ask, "Will I get my money back?" they are revealing their core fear – the fear of loss.

Insurance works differently. Term insurance is protection, not investment. You pay a small monthly amount, and if something happens, your family gets protected with a large sum. If you live, you don't get the premium back – that is the trade-off.

But many reject this trade-off because they cannot see the "return" or "money back." This is why ULIP and endowment policies feel more comfortable – they promise returns.

The problem? Those policies cost 5–10 times more and provide 50% less actual insurance coverage.

⏸️ The "I Will Buy It Later" Trap

Every year, the person says: "I'll buy insurance next year when I earn more."

But here is the truth – the younger and healthier you are, the cheaper the insurance. Delaying costs you money, not saves it.

A 25-year-old healthy male can buy a 1 crore rupee term insurance for approximately 300–400 rupees per month. At 40, the same coverage costs 2,000–3,000 rupees. At 50, it becomes nearly impossible or very expensive.

Delay is not a strategy – it is a slow financial mistake.

👨‍👩‍👧 Who Really Needs Life Insurance?

If you have dependents – wife, children, parents, siblings depending on your income – you need insurance.

Here is the simple logic:

✅ If you die, can your family pay your home loan without you?

✅ Can they pay children's education fees?

✅ Can they maintain their current lifestyle?

If the answer is "no," you need insurance.

🎯 What You Should Do Today

Stop waiting for the "right time." Buy term insurance now.

Take 10 minutes today – calculate what your family would need if you were gone (home loan + education + living expenses). Then buy a term insurance policy that covers that amount.

It will cost you less than a coffee per day, and it will give your family the financial security you have been planning all along.

Life insurance is not about you.
It is about the people who will miss you.

Buy it today, so they are protected tomorrow.

🏷️ Tags: Life Insurance • Term Insurance • Financial Decisions • Money Psychology • Mind & Money • Meri Baat • Prafull Talks