You Should NOT Buy Life Insurance!
A Completely Honest Article That Most Insurance Advisors Would Never Write.
“Don’t buy life insurance.”
There. I said it.
In fact, if you’re perfectly comfortable with your family struggling financially after you’re gone, if you don’t mind leaving unpaid debts behind, and if you believe nothing unexpected could ever happen to you, then you absolutely should not buy life insurance.
This article isn’t written to convince you to buy anything.
Instead, let’s look at the reasons people give for not purchasing life insurance.
You may discover that some of those reasons make perfect sense.
Others... perhaps not so much.
Reason #1: You’re Planning to Live Forever
Let’s begin with the most obvious reason.
If you’ve discovered the secret to immortality, congratulations.
You don’t need life insurance.
Unfortunately, the rest of us don’t know when our time will come.
Every day, healthy people leave for work expecting to return home for dinner. Some never do.
Life isn’t predictable.
Nobody buys life insurance because they expect to die tomorrow.
They buy it because nobody knows when tomorrow stops coming.
Reason #2: Your Family Doesn’t Need Your Income
Ask yourself one question.
If your income disappeared tomorrow, what would happen?
Would your mortgage still be paid?
Would your children’s education continue uninterrupted?
Would your spouse have enough money to maintain the same lifestyle?
Would bills magically pay themselves?
If the answer is yes—and you have enough assets to comfortably replace your income for years—then perhaps you genuinely don’t need life insurance.
But most families depend on one or two incomes.
Removing one of them overnight creates more than emotional pain.
It creates financial hardship.
Reason #3: You Enjoy Financial Risk
Some people enjoy skydiving.
Others enjoy investing in volatile markets.
If your family also enjoys financial uncertainty after you’re gone, then by all means skip life insurance.
After all, nothing says “I love you” like leaving your loved ones wondering how they’ll pay next month’s bills.
The reality is this:
Life insurance isn’t about preparing for death.
It’s about protecting the people who continue living.
Reason #4: Debt Is Someone Else’s Problem
Have a mortgage?
Car loan?
Business loan?
Personal line of credit?
Credit cards?
Student loans?
Perfect.
Leave them behind.
Someone will figure it out.
Except that’s not how life works.
Many obligations don’t disappear simply because someone passes away.
Families often face difficult financial decisions while grieving.
Life insurance can provide the funds to eliminate those burdens instead of passing them on.
Reason #5: Your Children Can Figure It Out
Children are resilient.
But resilience shouldn’t be mistaken for financial independence.
Education costs continue to rise.
Housing is expensive.
Living expenses keep increasing.
Imagine your children having to postpone university because financial support disappeared.
Or imagine your spouse working multiple jobs simply to keep the household running.
Life insurance exists to prevent those possibilities—not because they’re guaranteed, but because they’re possible.
Reason #6: Your Employer Has You Covered
Many people believe their employer’s group insurance is enough.
Until they change jobs.
Get laid off.
Retire early.
Become self-employed.
Or discover the coverage amount was far lower than expected.
Employer-sponsored insurance is a valuable benefit.
But relying on it entirely is similar to renting a house and assuming you’ll own it forever.
Benefits change.
Jobs change.
Life changes.
Reason #7: You’re Waiting Until You’re Older
One of the most expensive financial decisions isn’t buying life insurance.
It’s waiting.
Insurance premiums are largely based on age and health.
Every birthday generally means higher premiums.
Develop a medical condition, and your options may become limited—or disappear altogether.
Ironically, the people who need insurance the most are often the ones who qualify for it the least.
Reason #8: You’ll Invest Instead
This is one of my favorite arguments.
“I’ll just invest the money. May be in real estate over and over again.”
Excellent idea.
Investing is important.
You absolutely should invest.
But investments and life insurance solve different problems.
Investments help build wealth.
Life insurance protects wealth.
You don’t buy home insurance expecting it to outperform the stock market.
You buy it because replacing your house would be devastating.
The same principle applies to replacing decades of lost income.
Reason #9: Nothing Bad Happens to Healthy People
Many people associate life insurance with illness.
The truth is that unexpected events don’t ask for permission.
Traffic accidents.
Unexpected medical conditions.
Rare diseases.
Natural disasters.
No one wakes up expecting tragedy.
That’s exactly why planning exists.
Reason #10: Someone Will Start a Fundraiser
The internet has made crowdfunding incredibly popular.
Unfortunately, it has also become a substitute for financial planning.
Thousands of families are forced to ask friends, relatives, and strangers for financial help during their worst moments.
Imagine replacing online donations with a guaranteed financial safety net already in place.
That’s what life insurance can provide.
Reason #11: You’d Rather Pay More Later
Insurance is one of the few products people hope never to use.
Ironically, the younger and healthier you are, the less expensive it usually is.
Waiting rarely makes it cheaper.
It usually makes it significantly more expensive.
Sometimes unavailable altogether.
Reason #12: You Think Life Insurance Is for You
Here’s the biggest misconception of all.
Life insurance isn’t really for the person buying it.
It’s for everyone who depends on them.
Your spouse.
Your children.
Your parents.
Your business partner.
Your employees.
Your future.
When viewed through that lens, the conversation changes completely.
The Truth Most People Discover Too Late
Nobody wakes up wishing they had purchased less protection for their family.
Many families wish there had been more.
The greatest value of life insurance isn’t measured by the death benefit.
It’s measured by the financial stability it provides during life’s most difficult moments.
Real Life Case Study
“I’ll Buy Life Insurance Later...” – A Lesson Learned Too Late
The following case study is based on a common situation that many financial advisors encounter. Personal details have been changed to protect privacy.
A few years ago, I met a client in his late 30ss who had just purchased his first home. Like many Canadians, he was excited about becoming a homeowner. We discussed his mortgage, monthly budget, emergency savings, and the importance of protecting his family’s financial future.
During our conversation, I recommended that he should consider purchasing an individual life insurance policy just to cover the mortgage first at the minimum.
His response was one I have heard many times.
“I’m healthy. I don’t smoke. I go to the gym. I’ll buy life insurance later. Right now, I just want to keep my monthly expenses as low as possible.”
He chose not to purchase life insurance (due to x, y, z reasons known to him, which he didn’t share with me at all).
At the time, his decision seemed reasonable to him.
After all, nothing was wrong with his health.
Life Went On
Over the next several years, life was good.
He continued making his mortgage payments.
His home’s value increased, the market was also doing good.
His income improved.
Every renewal, we briefly revisited the topic of life insurance.
Each time, the answer was similar.
“Maybe next year.”
As financial advisors, we understand that delaying life insurance is one of the most common mistakes people make. Unfortunately, insurance is one of the few financial products where waiting rarely works in your favor.
An Unexpected Phone Call
Recently, I received a call from him.
His tone was very different.
He told me he had recently been diagnosed with atrial fibrillation (AFib)—an irregular heart rhythm that can increase the risk of stroke and other heart-related complications. While many people with AFib live active lives with proper medical care, it is a condition that insurers typically evaluate carefully during the underwriting process.
His first question wasn’t about investments.
It wasn’t about his mortgage.
It wasn’t even about his health.
It was:
“Can you work out a quote for me. I am aging fast and would like to have Life Insurance?”
The Conversation Had Changed
Several years earlier, he had been shopping for the lowest monthly premium.
Now he was shopping for a company that would even consider offering him coverage after being diagnosed with a new medical condition.
The discussion was no longer about saving $20 or $30 per month.
It was about:
Whether coverage would be approved.
Whether additional medical records would be required.
Whether premiums would be higher because of his diagnosis.
Whether exclusions or ratings might apply.
Whether postponing the application until his condition stabilized would produce a better outcome.
These are questions that simply didn’t exist when he was healthy.
Health Can Change Overnight
None of us plans to receive a medical diagnosis.
It doesn’t have to be AFib.
It could be high blood pressure.
Diabetes.
Sleep apnea.
A heart condition.
Cancer.
Or another unexpected illness.
Many people assume they’ll purchase life insurance “when they’re ready.”
The reality is that your health—not your calendar—often determines your eligibility and premium.
The Cost of Waiting
Years ago, he qualified as a healthy applicant.
Today, the underwriting process is much more detailed and scrutinized.
Depending on the insurer and the individual’s overall medical profile, a diagnosis such as AFib may result in:
Higher premiums than would have been available previously.
Additional medical underwriting.
Postponement until the condition is stable.
Modified terms.
Or, in some cases, a decline from certain insurers.
Every situation is unique, and underwriting decisions vary by insurance company and individual circumstances.
The Irony
Years ago, he was trying to save a small amount each month.
Today, he is willing to pay significantly more—if he can obtain standard premium coverage he once declined.
That is the irony of life insurance.
The best time to buy it is usually when you feel you don’t need it.
The hardest time to buy it is often when you realize you do.
The Lesson
I share this story because it highlights an important financial planning principle.
You don’t purchase life insurance because you expect something bad to happen.
You purchase it while you still have the advantage of youth and good health.
None of us can predict what the next medical appointment will bring.
We can’t control tomorrow’s diagnosis.
But we can make thoughtful decisions today that protect the people we care about most.
If you’re healthy today, don’t assume you’ll have the same insurance options five years from now.
Your future self—and your family—may be grateful that you acted while you had the opportunity.
Finally
If, after reading this article, you still believe your family would be financially secure without your income, your debts are fully covered, your future obligations are funded, and your loved ones wouldn’t face hardship if you weren’t here tomorrow, then perhaps you truly don’t need life insurance.
But if even one of those statements gives you pause, it may be worth asking a different question.
Not...
“Should I buy life insurance?”
But rather...
“If something happened to me tonight, would the people I love be financially protected?”
That’s the question life insurance was designed to answer.
And unlike many financial decisions, it’s far easier to make that decision while you still have the choice.
About the Author
Consultant Manpreet is an independent Financial, Insurance, and Tax Consultant dedicated to helping Canadians make informed financial decisions through education and personalized advice.
Before recommending any product or service, he prefers to begin with a consultation to determine whether working together is the right fit. Both no-obligation introductory consultations and paid in-depth consultation sessions are available, depending on your needs. Separate consultation plans are also offered for individuals, families, and business owners, along with Annual Personal and Corporate Tax Filing services.
If you’d like professional guidance, start with a conversation—not a commitment—and discover the solutions that best fit your financial goals.
Please note: The complimentary **no-obligation introductory consultation is limited to 15 minutes and is intended to help determine whether we are the right fit to work together. More comprehensive discussions and personalized planning are available through my paid consultation plans.