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It is not uncommon that people avoid life insurance despite acknowledging the uncertain nature of the future. Typically, one would get life insurance to prepare for any kind of emergency. However, general attitude of the global population towards life insurance is varied.

Is insurance an investment or an unnecessary expenditure? 

A 2017 Princeton survey found that close to 40% of Americans do not have life insurance. Notably, 65% of the uninsured population were millennials who range between age 18 and 29. Another section of the population which was largely uninsured was those with less formal education, those who were unmarried, and those who make less money.

Another study done in Philippines and commissioned by Sun Life Financial Philippines found that of the 1,200 respondents surveyed, 39% put money in insurance to fund goals but not for life insurance. While 68% of Filipinos are worried about the future, it is profound that they do not have an inkling that life insurance could help to assuage the worries.

An intriguing fact from the surveys is that people view life insurance as an expense. According to the study in Philippines, respondents said they thought of life insurance products as “only added expenses to their day-to-day budget.” On the part of the Americans, respondents said that life insurance cannot be equated to auto or home insurance.

Why you should get life insurance

Despite the views from the US and Philippines, it is not lost on the respondents that the future is uncertain. This implies that, actually, they worry about what might happen to their families in future if they cannot afford expenses like medical bills.

Getting life insurance settles your mind. While we worry about what could happen to our families once we depart, it should be clear that the paycheck you get today will not be around after your death. However, life insurance ensures that your family has a financial support to lean on in the absence of your paycheck. This realization should go a long way into giving you peace of mind.

Another reason you get life insurance is that it is cheap. We pay life insurance premiums periodically and the amount grows with time. By the time your paycheck is gone, you might have enough money to help your family steer through difficulties.