In 2010, GoFundMe was established. Since then, most people have used this fundraising platform to pay for their loved one’s funeral costs. Do you fall within the category of: “I have no idea why people want to purchase life insurance”? When talking to my clients, friends, and family, I learned that many of them believe that they are not going to die, life insurance costs too much, or their family will take care of things when they die. It’s sad to place that financial burden on your family and loved ones. The average cost of a funeral is $12,000. Over 70% of the population doesn’t have $500 in their savings. Most people will not be able to pay for a funeral.
Talking about death is not a topic most people want to discuss. You’re going to die. We don’t know when or how, but you can’t stop it. Take the time now to prepare, then go live your life! I’m prepared to die. My family will not be financially burdened or stressed. All they will do is celebrate my life and go on with their lives. My husband will rest easy knowing he can stay in the home we built together, pay any debt owed, take a vacation, buy a brand-new car, invest money, or do whatever he wants. Can you say the same?
The reasons you need to have insurance now are simple and straight to the point. Don’t overcomplicate things. Just do it!
Reason #1:
It’s inexpensive/cheap/cost-efficient
I often hear that it costs too much money to get life insurance, when in fact, purchasing life insurance is the ultimate way to say you love your family/loved ones. If it costs you $25.00 a month to get $100,000 in life insurance to protect your family, wouldn’t you, do it? People pay their cell phone provider $15 a month to protect their phone if it’s stolen or broken but will not pay for financial protection for their family. Why is that? One client refused to get life insurance because he didn’t want to give up his cable. He explained to both me and his wife that watching tv was more important to him. Cable is not the only reason why people may not want to get life insurance. It could be clothes, shoes, handbags, eating out, travel, and many other reasons. Are you this person I speak of, or do you know someone like this?
Look a the chart below to see different quotes:
1. Non-Smoker:
| Gender | Age | Death Benefit | Monthly Cost |
|---|---|---|---|
| Female | 20 | $100,000 | $11.64 |
| Female | 30 | $100,000 | $18.11 |
| Female | 40 | $100,000 | $25.55 |
| Female | 50 | $100,000 | $45.55 |
| Female | 60 | $100,000 | $90.30 |
| Female | 70 | $100,000 | $242.55 |
Note: Insurance is inexpensive when you don’t smoke and maintain a healthy weight.
| Gender | Age | Death Benefit | Monthly Cost |
|---|---|---|---|
| Male | 20 | $100,000 | $14.61 |
| Male | 30 | $100,000 | $21.96 |
| Male | 40 | $100,000 | $29.75 |
| Male | 50 | $100,000 | $55.21 |
| Male | 60 | $100,000 | $122.67 |
| Male | 70 | $100,000 | $299.16 |
Note: Insurance is inexpensive when you don’t smoke and maintain a healthy weight. Men pay more insurance because they are expected to die before women.
2. Smoker:
| Gender | Age | Death Benefit | Monthly Cost |
|---|---|---|---|
| Female | 20 | $100,000 | $13.48 |
| Female | 30 | $100,000 | $27.65 |
| Female | 40 | $100,000 | $50.49 |
| Female | 50 | $100,000 | $100.08 |
| Female | 60 | $100,000 | $277.33 |
| Female | 70 | $100,000 | $482.65 |
| Gender | Age | Death Benefit | Monthly Cost |
|---|---|---|---|
| Male | 20 | $100,000 | $22.31 |
| Male | 30 | $100,000 | $31.85 |
| Male | 40 | $100,000 | $54.60 |
| Male | 50 | $100,000 | $129.85 |
| Male | 60 | $100,000 | $289.89 |
| Male | 70 | $100,000 | $700.44 |
When should you get insurance? Buy it when you’re young and healthy! Insurance is affordable. If you want to learn more about it, read my blog, Insurance 101.
Reason #2: You’re healthy
Most of us are healthy when in our early twenties. Meaning, we’re not overweight, not a diabetic, have no blood pressure issues, no Cancer, heart issues, or other issues. Insurance companies look at your health to determine if they will give you insurance. The older you get, the more likely you are to have more health issues, and if hereditary diseases run in your family, your chances are greater. Insurance companies have come a long way with covering people with health issues. Many insurance companies will cover people with a history of cancer, heart issues, and stroke. Take care of yourself as you get older. It helps if you find yourself needing insurance at an older age.
Reason #3: Life insurance has living benefits.
I bet you’re asking what the living benefits are? Some insurance companies allow you to get access to your insurance money if you have a heart attack, get cancer, a stroke, have kidney failure, or have a terminal illness. Depending on the company, you can get up to 95% of the funds if and when you need it. For example, if you have a $100,000 life insurance policy and get diagnosed with cancer, you can take out $50,000 and use it for your treatment, to pay your bill, or whatever else you may need the money for. This money will NOT be taxed. Now, you will still have $50,000 leftover if you pass away. Your family can still bury you. Does your policy offer this? One good thing about this feature is that you will have access to this benefit as long as you have the policy. As you know, growing older brings illnesses and diseases, but in today’s world, I have clients in
their twenties, thirties, and forties, being diagnosed with cancer, heart failure, and other terminal illnesses.
Take the time now and get the proper insurance coverage you need. Schedule time with me here if you need help or have any questions.
Be aware, be informed!