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Why People Don’t Buy Life Insurance

Jan 10, 2013 2 Minute Read

As a life insurance agent, you know that everyone should have life insurance. However, there are some people who don’t buy life insurance. There are a number of reasons why someone might not buy life insurance, but a lot of these reasons can be addressed in your sales presentation if you know what these reasons are ahead of time. Here’s a list of some of the most common reasons why people don’t buy life insurance.

Other Financial Priorities

With high unemployment rates, reduced household income and daily living expenses on the rise, a lot of people feel the need to postpone making any additional financial decisions. Unfortunately, this means they’ll probably put off buying life insurance. Budgeting under difficult financial conditions can be hard and many people just don’t know how they’ll fit the cost of insurance into their budget that is already stretched thin. As a life insurance agent, it’s your job to help someone understand the importance of life insurance and how they can budget for it. However, financial concerns aren’t the most common reason why people don’t buy life insurance.

Lack of Knowledge

Most people who choose not to buy life insurance don’t buy it because they don’t understand it. They don’t have a clear understanding of what type of coverage they should buy or how much life insurance they need. As a life insurance agent, you need to be able to educate your prospects on what kind of coverage they need. Prospects respond well to an agent who takes the time to offer individualized counseling to improve their understanding of the life insurance products available to them. Once your prospect understands their options, it will be a lot easier for them to envision how to fit life insurance into their budget.