Is Life Insurance a Waste of Money?

There’s a quote from Chuck Palahniuk’s short novel, “Fight Club”, made by his unnamed protagonist (played by Edward Norton in the later film adaptation), which for some reason always springs to mind when I think about life insurance. (I thoroughly recommend you see or read this if you haven’t done so already, by the way!) The quote is:

“On a long enough timeline, the survival rate for everyone drops to zero.”

We’re all mortal and most of us are aware of it, even though it is not something we necessarily get a chance to think about so often in our busy, task-orientated, target-driven, fast-moving lives. Other stuff always gets in the way.

What’s more, none of us really want to think about our own deaths. It is seen as morbid and I know some people feel that by the very act of even talking about their own death, it somehow brings that final day closer!

But I tell you this, if you have loved ones that depend on you financially, you’d better make sure you’ve thought about it. Ask the question:

“What will happen to them if the unthinkable happens to me?”

On top of that, what if you suffered from a critical illness or condition, like a heart attack or stroke, that meant you didn’t necessarily die (at least, not straight away) and were unable to work and had to rely on your family or other carers to look after you?

Could you and your family survive financially?

These are tough questions, no doubt.

But they are questions that need to be addressed within your financial planning and to give you the peace of mind that your loved ones are protected, you can take out a life insurance policy.

Due to the fact that life insurance is inherently associated with death (yeah, it should be called ‘death insurance’ really, but I think that would make it even more difficult to market!), it’s a topic that can make people uncomfortable and I’ve heard many ill-advised arguments over the years against buying life insurance, some of which are outlined in this excellent article here.

Granted, if you are either young, single and without children, or you are super-wealthy, there is not often a significant need for life insurance (although there are other reasons why it might be useful, such as for estate and tax planning purposes).

The bottom line is though, if you have dependents (and that could include your children, spouse or even elderly parents) and/or you need to protect your business in the event of your death, you should have some form of protection place.

It will never happen to me

Unfortunately, death will happen to you at some point (see quote above), but you may have never thought about premature death or critical illness and the burden that may put on your loved ones.

Here are some sobering statistics to highlight just how common critical illness and premature death is.


  • 1 in 6 people around the world will have a stroke in their lifetime
  • Every five minutes someone in the UK has a stroke
  • One in five strokes are fatal
  • 25% of strokes occur in people under age 65
  • In 2010 stroke was the fourth largest cause of death in the UK after cancer, heart disease and respiratory disease

And of those who survive a stroke:

  • 42% will be independent
  • 22% will have mild disability
  • 14% will have moderate disability
  • 10% will have severe disability
  • 12% will have very severe disability

Heart disease

  • 1 in 6 males and 1 in 9 males died from coronary artery disease in 2011
  • Every 5 minutes someone in the UK has a heart attack



  • More than 1 in 3 people in the UK will be diagnosed with some form of cancer in their lifetime
  • 1 in 35 men and 1 in 20 women will be diagnosed with cancer before age 50
  • 6 months is the average time people take off work to recover from chemotherapy and radiotherapy, after a
    diagnosis of cancer


These statistics speak for themselves, so if you don’t have cover, you really should seriously consider getting some and the risk you are taking by not protecting your family.

Don’t Delay – Act Now!

Ask yourself a simple question:

“If I die tomorrow, would that negatively impact on anyone financially?

If the answer is, “Yes”, then you need to look at taking out a life insurance policy.

Life insurance is really one of those things that you should not procrastinate over, not just because it leaves your loved ones vulnerable, but also because the older you get, the more expensive it becomes and taking out an insurance policy when you are young allows you to lock in lower premiums.

So don’t delay – get on it today!

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