The Cost of Procrastination: Life Insurance

The Cost of Procrastination: Life Insurance

When it comes to financial planning, few topics get pushed aside as often as life insurance. People tend to avoid it—not because it’s unimportant, but because it forces us to face uncomfortable truths. Thinking about mortality, health risks, and what might happen to our families after we’re gone isn’t easy. But waiting too long can be costly.

In our latest conversation, our advisors shared why procrastination around life insurance is so common—and why it can have serious financial consequences.

Why Do People Delay?

Many people tell themselves they’ll “get around to it.” Some don’t realize how much is at stake, while others don’t want to face the idea of their own mortality. For men especially, there can be a tendency to think, “If something happens, I’ll figure it out.” Women, on the other hand, often view money as security and recognize that life insurance helps provide that stability.

There’s also the overwhelm factor: with so many types of policies—term, whole life, universal—it can feel easier to put off the decision entirely. But delaying doesn’t make the need go away.

The Real Cost of Waiting

Life insurance only gets more expensive as you age. Put it off for five years, and your premium could easily double. Worse, unexpected health issues can make you uninsurable altogether. A cancer diagnosis, for example, often results in an automatic decline. Even lifestyle changes, like taking up certain habits or working in risky professions, can drive premiums up or limit your options.

And here’s the hard truth: if something happens before you’re covered, it’s too late. Unlike homeowners or auto insurance, you can’t wait until after a catastrophe to get protection in place.

Why Life Insurance Matters in Your Financial Plan

Life insurance is about more than just a death benefit—it’s about protecting the foundation of your financial plan. If the primary earner passes away without coverage, the rest of the plan—retirement goals, college savings, even day-to-day financial stability—can collapse.

Think of it like a bicycle wheel: each spoke represents an aspect of your financial life. If one spoke is missing, the whole ride is thrown off balance. Life insurance is one of those critical spokes.

Real-Life Stories: Too Late vs. Just in Time

Our advisors have seen both sides of procrastination.

• Too Late: One client declined coverage during an annual review, only to be diagnosed with an aggressive form of cancer before the next. When he wanted insurance most, it was no longer an option.
• Just in Time: Another advisor recalled a case where an application was submitted with a temporary premium check. Tragically, the client passed away in a plane crash before underwriting was finalized—but because the process had started, the family received the benefit. Without that proactive step, they would have been left unprotected.

These examples highlight the reality: tomorrow isn’t guaranteed.

Do You Need Life Insurance Right Now?

A few key signs point to the need for coverage:

• You have dependents relying on your income.
• You have significant debts, such as a mortgage.
• You want to leave a guaranteed legacy for loved ones or a cause you care about.

A common guideline is to carry enough coverage to pay off all debts plus 10 times your annual income. But every situation is unique, and the right policy depends on your goals, health, and budget.

What If You’re Unsure?

If you’re on the fence, start with two conversations: one with your loved ones and one with a trusted advisor. Ask: Would they be financially secure if something happened to me? Then, sit down with an advisor to review debt, income, and long-term goals. The right plan isn’t about overinsuring—it’s about giving your family options and peace of mind.

Final Thoughts

Life insurance isn’t about you—it’s about the people you love. Having coverage ensures that, in the worst-case scenario, your family has choices: time to grieve, flexibility to adjust, and financial stability to move forward.

So don’t procrastinate. Have the conversation, review your needs, and put the protection in place before it’s too late.