Life Insurance is a Waste of Money

Life Insurance is a Waste of Money

Life insurance is a waste of money when you have learned to defy death. If you have not figured out how not to die, you should buy life insurance. Life insurance is one of the most affordable insurance products on the market. More affordable than insuring your car, your cell phone and certainly your health. Sadly more young people under the age of 30 years old have their cell phones insured than their lives. Do the math…

To insure your cell phone on average costs about $10 per month. The average life of a cell phone is about two years. Therefore, a person is willing to pay $240 in premiums to cover an actual loss recovery of about $500 after deductible for two years. The same healthy 25 year old female can spend about the same $10 per month, $11.52 to be exact, guaranteed for 30 years to age 55, and purchase $100,000 in life insurance. This makes the risk ratio on a cell phone .48 cents on the dollar per two years versus life risk ratio of .04 cents on the dollar per 30 years. Feel silly yet? You should by now.

The old expression “there are only two guarantees in life, death and taxes” is very true. There is no guarantee to run over your cell phone with your car or drop it in the toilet, but we will all die someday. Everyone insures their house even though the risk is extremely low to be destroyed by a storm, flood or fire. Why would anyone not think to purchase life insurance knowing we are all going to die someday?

According to Life Insurance and Market Research Association or LIMRAs research, over 30% of US households do not have life insurance. A staggering 55% of US households or 58 million people admit they do not have enough life insurance and need more.  Not only are average US families not buying enough life insurance but those households that do have life insurance have had their face amounts decrease over $30,000 average since 2004. The most alarming number comes from a survey stating that 70% of US admit they would have serious financial problems if the primary breadwinner were to die within just a few months including 30% of households admitting their problem would be immediate. Yet pennies to dollars life insurance is the most affordable insurance product a person can buy while they are healthy.

Care more about the loved ones in your life than your smart phone. Insure your most precious asset, YOU! Don’t leave your loved ones, business partners or people you care about in a financial mess when the time comes. Take care of this issue today before it is too late.

“Life Insurance, because dying sucks, don’t do it for free”Tim Wilhoit, Agency Owner Your Friend 4 Life

Image by Ambro images at www.freedigitalphotos.net


Tim Wilhoit is owner/principal of Your Friend 4 Life Insurance Agency in Nashville, TN. He is a family man, father of 3, entrepreneur, insurance agent, life insurance broker, salesman, sales trainer, recruiter, public speaker, blogger, author and team leader with over 28 years of experience in sales and marketing in the insurance and beverage industries.

53 Responses to Life Insurance is a Waste of Money

  • There is never a plausible reason not to have Life Insurance… Great post Tim Wilhoit …. There will not be a single excuse that will be acceptable to the Loved ones

  • Glenn, thank you for the kind words, I couldn’t agree more.

  • I can help you with a fast and accurate turnaround time for your Life Insurance Policies. Go to http://www.com today and get started.

  • Nikki, I guess this means you liked my post enough to promote your website. Thank you.

  • This is very good!

  • Thank you Hazel. I am grateful for your feedback.

  • Yes you are correct indeed.

  • Tim, unfortunately advertising oneself instead of adding positive input to others posts seems to be what a lot of people use do. I find it to be obnoxious and rude.

  • Ken K. Why don’t you show me a better way of advertising my business? I have email you with no response. Should I email people long books to read to promote my company? Please, let me know a better way?

  • Nikki, I don’t mind to help you. Run advertising on media sources. On social media, it is more about value. If you post or write about helpful things people looking for, you will become an expert. People still like to do business with experts. This process does take time, but I am living proof it works well. Think of social media as a neighborhood party. You would not show up with an arm load of applications to sell your neighbors life insurance before having your first hot dog. Social media is no different. The “social” comes before the “media” for a reason. I wish you for best of luck my friend!

  • Just keep posting. I found it all to be in how one posts, the topic they post and where they post. I do not succeed 90% the time with my posts. But the other 10% of the time makes it ALL worth it. Good luck Nikki. Not trying to be rude. I understand your frustrations. 🙂

  • As for the article, there is certainly some valuable insight and a great perspective.

  • l,m 100% with Tim when you get youself involved with clients through social media or any other way of communication you learn
    and become more prepared and any situation that could help you client to take what is best for them and their families .
    expecially in this saturated market where agent sometimes think more for the value they adding to his o hers bank account and not the clients .

  • Always try to help and show value in what you are doing for your prospective clients.

  • Great article Tim. Is it possible to share it as is, with your name as the author, on my Facebook page and website?

  • Yes Bob, just hit one of the share icons at the bottom of the article for FB or Twitter. Thank you for your kind words and sharing it.

  • I love your post Tim. After only two years in the business they inspire me to know this is exactly where I should be. Helping people!

  • Well said.

  • Tim you are right and the sooner you act the better opportunity to protect your family, business, retirement and other goals.

  • I’m confused about the directive of this article. I saw more reasons TO buy life insurance than not to. However, the title implies an argument being made against it. Here’s my take. Life insurance becomes important to people when it’s already too late. My aunt died suddenly a couple years ago, and months before dying cancelled her LI policy. Her children struggled immensely with final expense costs. I remember the embarrassment and stress caused onto them by resorting to GoFundMe accounts and the like to raise the money needed to bury her and cover her last bills. It took its toll on the ones she left behind, leaving a 17 yr old and a 20 yr old homeless to fend for themselves. She wanted to save the $30, or whatever it was, per month and it left her children vulnerable. Obviously, she had no thoughts or intentions towards passing. “Figuring out how to not die” is the part that sticks out to me. Can anyone help me figure this out?? Who here knows how to cheat death?! We buy and, in our case, sell health insurance so that we can protect our loved ones after passing. It’s also one of the few insurances available that are actually tangible. There WILL BE a benefit, it’s not if there will be a benefit. If anyone struggles with objections to LI policies, use a personal experience. If you don’t have one, use mine. I think as sales people, too often we get caught up in the ins and outs of our insurance policies and forget to present the value and necessity that it entails. BELIEVE IN YOUR PRODUCT! If you don’t, find one you do believe in. It’s hard to sell what you wouldn’t buy yourself!!

  • That was the point! He must have done a good job……

  • Life insurance***, not health insurance. You get the picture though!

  • Life Insurance definitely falls in the it is BETTER to have it , and NOT NEED IT, than to NEED IT and NOT HAVE IT!

  • Thank you for the kind words Sam, Donald and Herman, I am grateful. David the title is a writing style called “Straw Man” in which the title is outrageous or controversial to draw in a reader, but the article is the exact opposite. I have been taking a writer mentoring course and I must say it has been very effective, if not over used. I agree with your comments. Your story happens way too frequently and can all be avoided with the proper amount of life insurance. Thank you all for sharing.

  • What other product can actually guarantee to do what you what it to do? IRA’s – no. Real estate — no. 401k’s — no. Your house — no.

    For folks that really think life insurance is a waste of money I like to ask them if they would get all the life insurance a company would issue if it didn’t cost anything. Of course we would! We want the benefits we just don’t like to pay for it.

    Thanks for posting this!

  • “Sadly more young people under the age of 30 years old have their cell phones insured than their lives.” <—- I really liked this quote!! Really hits a strong point with young consumers and priorities.

  • Nice post,,,,,as am in the same field I have many points to get from seniors like you,

  • Tim I will reach out to you..lol

  • I love the mathematical comparisons. Most people never think about life insurance.

  • I’m sharing this for sure.

  • Even that the title says is a waste of money it is not but I know majority of people are convinced that it is too expensive or that they don’t need it. That’s the reason we are in this business. To help customers to open their eyes and mind. Great article, Mr Wilhot. I read some of your great books.

    • Thank you for your kind words Milciades. You are correct. Of all the insurance products on the market, life insurance is the only one guaranteed to pay a claim. Remember death and taxes are guaranteed, everything else is just a guess.

  • Ok being a like insurance specialist for financial planners and brokers. I had to open this one and laugh! Love this!!!! “insurance is a waste of money when you have learned to defy death. If you have not figured out how not to die, you should buy life insurance”

    Amen! Amazing products with amazing features and incredible financial planning importance in balancing out a portfolio!!!!

  • Great article Tim. Can I say something perhaps never considered?

  • Hi Tim, I am not well versed in Life Insurance, can you tell me, in your example, after paying the $11.52 a month for 25 years, do you have anything? After you reach 55 years old, what do the premiums look like?

    • People buy Homeowners Insurance and the claim ratio is 1/1200. People buy Car Insurance and the claim ratio is 1/250. The last time I check Life Insurance is 1/1 so how is it a waste of money people who would say that are so mis-educated its not even worth debating

    • Edward the exact same amount that phone insurance would be worth in 25 years.

      • Tim, Thank you for the snarky, unhelpful reply. So much for a serious topic.

        • Edward, not trying to be “snarky”, but your question is vague. This particular blog was written to bring awareness to the millennials which according to LIMRA are not purchasing life insurance at all but are the largest consumers of cell phone insurance. This writing technique known as a “Straw Man” which is writing an absurd title with a counter point story was only to make this point. It is not possible to make every point about the importance of life insurance in less than 500 words. I written over 100 blogs on the importance of life insurance. Feel free to read through some of them. I do believe you will find what you are looking for my friend. Best of luck to you.

  • I would show them the value . Tell them a story of how someone benefited from the death benefit.

  • Not if you die!

  • We need to educate people about Life Insurance with Living Benefits. Traditional life insurance is basically a death insurance….it only pays out when the insured passes away and the primary beneficiaries collect on the death claim. However, with life insurance policies that have living benefits, the insured now becomes the primary beneficiary. Should the insured suffer from a Critical Illness (e.g. suffer from a heart attack, stroke, or be diagnosed with invasive cancer, just to name a few) or suffer from a Chronic Illness (unable to perform 2 out of the 6 activities of daily living for 90 days) or be diagnosed with Terminal Illness, then the insured could advance on your death benefit while they are still alive. The best part of this type of insurance is that the Living Benefits come with the policy at NO ADDITIONAL COST of premium.

  • I understand all of your suggestions for this blog. This particular blog was written to bring awareness to the millennials which according to LIMRA are not purchasing life insurance at all but are the largest consumers of cell phone insurance. This writing technique known as a “Straw Man” which is writing an absurd title with a counter point story was only to make this point. I have written almost 300 other blogs that make most of your points. It is not possible to make every point about the importance of life insurance in less than 500 words. I agree with all of your points, what we sell is a very important and necessary product and service. Thank all of you for sharing these great points.

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