Why Consumers Are Delaying Life Insurance Purchases

Despite widespread awareness of the importance of life insurance, many consumers put off buying a policy. Procrastination in life insurance purchases is a well-recognized phenomenon, and understanding why it happens is key to addressing the coverage gap. Currently, only about half of American adults have any life insurance coverage, a percentage that has declined over the past decade​limra.com.

This means a large number of families remain financially vulnerable, often due to delay in decision-making rather than an outright decision not to buy.

Several common reasons explain why people delay buying life insurance:

• Perceived Cost: Many individuals believe life insurance is more expensive than it actually is. In fact, studies have found that consumers – especially younger generations – often overestimate the cost by three times or more​ quotewizard.com. This misconception leads some to postpone buying, thinking it’s unaffordable.

• Other Financial Priorities: Younger adults may prioritize paying off debt or saving for a home, while older consumers might focus on retirement savings. Life insurance can fall to the bottom of the list, especially if it’s seen as something that can be done “later.”

• Discomfort and Procrastination: Thinking about one’s death and financial planning for it can be uncomfortable. It’s human nature to delay uncomfortable tasks. Some people intend to get insurance eventually but keep putting it off because it’s not an urgent requirement in their daily life.

• Lack of Understanding: The variety of policies (term, whole, universal) and confusion about how much coverage is needed can cause analysis paralysis. Without a clear recommendation, consumers may delay deciding rather than risk making a wrong choice.

• Reliance on Employer Coverage: Those who have some life insurance through work might delay getting additional coverage, assuming the basic policy is enough for now.

Addressing these issues requires education and engagement. When consumers learn that a healthy 30-year-old can get a substantial term policy for the cost of a monthly gym membership, it often surprises them into re-evaluating the “too expensive” myth. The industry is responding by simplifying products and using online education tools to show personalized needs. Agents and financial advisors also play a critical role: by proactively reaching out and starting the conversation, they can help individuals navigate options and feel more confident making a decision sooner rather than later. Ultimately, tackling the reasons for delay – through clearer information, affordability, and convenient buying options – will be crucial in narrowing the life insurance coverage gap.