Do I Really Need Life Insurance?

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Let’s face it. Most people put off buying life insurance for any number of reasons—if they even understand it. Take a look at this list—do any of them sound like you?

1. It’s too expensive. In the ever-burgeoning budget of a young family, things like day care and car payments and possibly student loans eat up a good chunk of the money each month, and a lot of people think that life insurance is just outside those “necessities” when money’s tight. But two things: life insurance is often not nearly as expensive as you might think, especially when you can get a good policy for less than the cost of a daily cup of coffee at the local café, and well, if money’s tight now, what if something happens to you? Here’s more information about the true cost of life insurance.

The True Cost of Life Insurance

“I can’t afford it.”

This is one of the most common reasons people give for not having life insurance. But the truth is: It’s less expensive than you think.

Most people overestimate the true cost of life insurance; 44% of Millennials think it costs more than five times what it actually does.1

But did you know that a healthy 30-year-old man would pay about $13 a month for a 20-year, $250,000, level-term policy?2 

And think about it, that means this same healthy 30-year-old could get $500,000 in coverage for about a dollar a day.

While it is an expense that you have to budget for, imagine what the financial impact would be for your family if something were to happen to you and you had no life insurance coverage at all.

There’s a policy to fit every budget, 

2. That’s that stuff for babies and old people, right? People of a certain age remember Ed McMahon telling them their grandparents couldn’t be turned down for any reason and figure that’s the target demographic for life insurance. Or, you might have been offered a small permanent insurance policy for your newborn, attractively presented with a cherubic infant on the envelope. The truth of the matter is that these are very specific insurance products—just as there are many insurance products for adults in their working years.

3. I’m strong and healthy! You eat right, you stay active, and everyone admires how grounded and centered you are. You passed your last physical with flying colors! That’s GREAT! But you’re neither immortal nor indestructible. It’s not even that something could happen to you—though it could—so much as when you’re at your strongest and healthiest, there’s no better time to get a policy to protect your loved ones. If you fall seriously ill or suffer significant injury later, it will make it tougher to get that kind of policy, if any at all.

4. I have life insurance through my job. Many people are offered life insurance as part of their employee benefit coverage –and often, it’s the first time they encounter life insurance and have no idea that a $50,000 policy, or one or two times their salary, isn’t as much as they think it is. It sounds like a lot of money (and it is!), until you figure that it has to cover some or all the expenses for your loved ones in your absence. Plus, if you leave the job, it’s typically the type of insurance that doesn’t “move on” with you.

5. I don’t have kids. Sure, kids are a big reason why some people get life insurance. But that’s not the only litmus for needing protection. If there is anyone in your life who would suffer financially from your loss—your spouse or live-in partner, a sibling, even your parents—a life insurance policy goes a long way in making sure everyone’s still OK even if something happens to you.

6. Life insurance—it’s on my list … eventually. There’s no deadline on life insurance, no mandate from the government on purchasing it. Your parents may have never talked to you about its importance, and it’s certainly not the most invigorating topic for conversation. But don’t let your “eventually” turn into your loved ones’ “if only.”

If any of this sounds daunting, just know that it does’t have to be. You can start by doing a quick calculation on your own to see if you need it with this Life Insurance Needs Calculator (or just click on “What’s Next” below). And just know that you can also talk things through with an insurance agent—at no cost. They will help you figure out how much you may need, and also find a policy that fits into your budget.

Contact Arlene Huerta at 925-693-9912 to set an appointment or get a quote now.

For more information on Life Insurance, Long-Term Care Insurance or Disability Insurance Click Here.

September is Life Insurance Awareness Month. Make sure you are properly covered.

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Joe Medrano, ARM

Joe has over 30-years of experience in providing risk management & insurance consulting for businesses. He obtained his Associate in Risk Management (ARM) in 1993. He is an entrepreneur who has formed two successful for profit companies, one 501 (c) 3 non-profit organization, developed the Non-Profit Guidance Center, an online resource center for non-profits at www.nonprofitguidance.com and put together the Villages Risk Management & Insurance Program, a proprietary risk management & insurance program for non-profits that assist seniors with aging in place.