Why life insurance is a waste of money

In this article I want to be a bit provocative: life insurance is often a waste of money for young people.

A lot of people claim the main reason is that the chances of dying before age 70 are slim, and the chances of living past age 70 are good. But that's wrong - the whole point is to cover off a low-probability but high-impact eventuality that could affect your loved ones financially.

The real reason life insurance is a waste of money for Gen Z is to do with children. If you don't have kids, there are better ways to invest your money than buying life insurance.

In this article:

You Don't Need It If You Have No Dependents
You Can Get Life Insurance Through Your Employer
There Are Better Ways to Invest Your Money

You Don't Need It If You Have No Dependents

That's right: no kids (or other dependents), no need to buy life insurance. It really is as simple as that.

You Can Get Life Insurance Through Your Employer

Even if you do have someone who relies on you for financial support, you might not need to go out and buy a life insurance policy. Many employers provide something called "death in service" benefits, which will pay out a lump sum in the event of your death. Make sure you check what your employer is offering before you part with hard-earned cash to pay for life insurance.

There Are Better Ways to Invest Your Money

If you have spare cash and no one is counting on you financially, it is probably a better idea to open a savings account or an investment plan than to buy a life insurance policy. If you own your own home, you could also think about paying off some of your mortgage.