February 15, 2017 // All Lifestyle
Think about your smartphone. For many of us, it’s how we stay connected, and we’d be lost if we forgot it at home for the day. We don’t think twice about paying the average of about $60 a month (double that for some people!) to stay in touch.1 It’s just a fact of our day-to-day life.
Same with the latte we pick up on the way to work—fuel for the day, or at least the morning, right? On average, those who swing by the cafe as a matter of course spend, on average, $2.70—per cup.2 Five cups per week and the cost of that morning pick-me-up costs $54 at the end of the month.
Not everyone is a smartphone or coffee addict, but we all have expenses we put in the “of course we must have it” category: cable TV, right? That will cost an average of $64 a month.3 Lunch out a couple of times a week at work? That tallies up too.
Unfortunately, many of us don’t put something much more important in the “must have” column of our budget: life insurance.
We’d really rather not think about things like that—a premature death, not being around for our spouse or partner, or for our kids. We also assume it just isn’t an affordable option for us. And for many of us, that couldn’t be farther from the truth.
Let’s say you’re a healthy 30-year-old female who doesn’t smoke. What do you think it would cost to get a $250,000 level term policy for 20 years? Would it cost more than your phone bill? Your lattes? Eating out? Cable? The answer is none of these. It’s actually a fraction of any of these average bills.
According to information in the recent survey by Life Happens and LIMRA, consumers think it’s twice as expensive as it really is.4
And while not everyone (obviously) is a healthy 30-year-old, there are competitive options for many people. Keep in mind that your premium—which is how much you pay for your life insurance coverage—depends on two major factors: your age and health.
The younger you are and the better your health, the lower your premiums. That’s why it often makes sense to get coverage early on, even before you have family obligations or kids. Obtaining coverage at a competitive rate makes good financial sense.
But if you’re older or have had some health issues (or both!), it still makes sense to check into life insurance. You’ll probably be surprised at the amount of coverage you can get within your budget.
The bottom line is: life insurance can be less expensive than you think, so drink a few more drip-brew coffees (instead of those lattes) and get yourself covered!
1 “Wireless Bills Go Up, and Stay Up, Thomas Gryta, The Wall Street Journal, March 9, 2014
2 “Americans Pay an Average $2.70 for Coffee, While Tipping 20 Percent,” Tom Risen, U.S. News, September 29, 2015
3 “Cable Prices Are Rising at 4 Times the Rate of Inflation,” Alicia Adamczyk, Time, February 17, 2016
4 2016 Insurance Barometer Study, Life Happens and LIMRA
Helpful Tips for Making a Life Insurance Claim
An often-heard refrain is, “Buy term and invest the difference.” Others say, “Why rent (term), when you can own (permanent)?”