There are many misconceptions about life insurance.
For one, many people don’t know that a life insurance policy is easy to get and can provide household discounts when bundled with other policies.
Also, many people believe you don’t really need life insurance until you’re much older. And one of the biggest misconceptions about life insurance is that it’s an added costly to your monthly or yearly bills and you just can’t afford to do that right now.
Let’s take a closer look at that last point and see how average life insurance costs compare to some of the most common monthly expenses: streaming and subscription services.
What Does Life Insurance Cost?
The cost of life insurance actually increases the older you get, so there’s really no need to wait.
The other factors that affect your life insurance costs are lifestyle, job, amount of coverage requested, and gender. Smokers have higher life insurance costs, and your family medical history can also come into play.
Term life insurance policies will also sometimes be cheaper than whole life policies because they only last for a set period of time and do not accumulate cash value.
For the average non-smoker 30-something, a 20-year term life insurance policy with a policy worth $500,000 will cost about $200 a year. In your 40s, it’s closer to $300. For whole life, the average annual price is in the thousands because it won’t expire and the policy value grows as you age.
If you’re younger and have fewer financial entanglements, you won’t need the most expensive policy. A 20-year term life insurance policy with $100,000 of coverage can cost you less than $20 a month.
How Much Do Streaming Services Cost?
$300 a year breakdown to $25 a month. Netflix alone is up to $20 without ads while Disney+ and Hulu are each $15. And if your streaming is to replace cable, you’re looking at more like $50-$80 a month depending on the service.
That’s just TV. What about meal subscription services? Blue Apron costs about $60 for three meals for two people per week while HelloFresh costs closer to $70 a week.
None of this is say you should purchase the services you enjoy, but if cost is the only thing holding you back regarding life insurance, Darr Schackow can help you find a way around that.
A whole life policy will cost more, but the benefits in the end are much greater. An independent insurance agent can find the best policy for you in terms of cost and coverage, but ultimately, life insurance isn’t where you should be pinching pennies.
Who Needs Life Insurance?
Life insurance is there to cover your debts you may leave behind after you pass. This typically applies to a mortgage or income replacement. But life insurance can also help your loved ones cover your funeral costs and even leave an inheritance behind.
As we said, many young people simply think they don’t need life insurance—especially if they do not own a home or have a family to support. But there are other debts that you might leave behind such as car or credit card payments.
Think of it this way, if anyone in your life depends on your income, a life insurance policy will benefit them greatly. And since policies are cheapest when you’re young, why not strike now?
Not to mention, life insurance is not hard to get. Answer six questions, and a DSI Agent can get you a policy the same day for up to $50,000 max. Some policies don’t even require height and weight.
A life insurance policy is a good, long-term investment, and if you are in perfect health, a DSI Agent can identify the right maximum for your lifestyle and needs. Plus, getting a life insurance policy with another member of your family can provide household discounts. Whether you get a policy with your brother, sister, spouse, parent or child, your DSI Agent can get discounts on the life policy and your auto insurance.
Term vs. Whole Life Insurance
As we’ve stated, the two most common types of life insurance policies are term and whole life and they are just like they sound. Term policies last for a specified amount of years while whole life is until your passing.
Whole life policies can also be looked at as something of an investment as they accumulate cash value as you age, they are tax deferred, and you can withdraw funds and borrow against them.
Term and whole life policies both have a death benefit, which is the amount paid to your beneficiaries upon your death.
Are You Ready for Life Insurance?
Getting a life insurance policy is easy, and it is a good investment for you and your family, not matter what stage of life you’re in.
And like all things insurance, when you’re working with an independent insurance agency, the benefits are even greater.
So talk to your DSI Agent today. We will walk you through the process and identify the right coverage to meet your needs and your lifestyle.