I agree it can be a good thing, but here’s my logic:
I would get life insurance if I had a wife and kid who solely depended on me. In other words, if I die they’d have no income.
However, if my wife makes money she doesn’t depend on me (therefore my kid will be fine).
As a plus, if I die my wife and kid will get everything I own (investments, car, etc). That’s their insurance.
On top of that, they’d have one less mouth to feed.
So the way I see it is how many people depend on me to feed them? (since I’m 25, thankfully no one depends on me… Yet. So I don’t need life insurance).
Secondly, if I get life insurance and don’t die soon, that’s a lot of money over the years (that could have been invested in an index fund and multiplied).
Since I’m an optimist, I don’t plan on dying anytime soon. Thankfully, the statistics are in my favor (I don’t smoke or drink, I workout every day, and I drive my car once a month).
But I agree with you everyone’s situation is different. I just think that people’s first reaction is “get life insurance!” without giving it much thought.