Have you avoided getting life insurance because it’s too expensive? Cost happens to be the number one reason people don’t get life insurance, but the reality is, it doesn’t cost as much as one may think. In fact, 80% of consumers think life insurance is more expensive than it really is (source). Let’s clear the air about the actual cost so you can make the decision to pay a little now, or cost your family a lot later.
~This is a sponsored post with Jenny Life Insurance and BraVoMark. All opinions are mine.~
According to a study from 2015, people were asked about how much they thought an annual life insurance premium would cost for a healthy 30 year old. Most estimated the cost would be between $400 and $1000. Reality? It would only cost around $160 a year (source). Astonishing, right? But the truth is, I would have expected the same.
When looking at your financial situation and determining whether it’s worth getting a life insurance policy, it’s important to understand that it’s actually more expensive to not have life insurance. In my previous post on The Truth About Death Bills of the Stay-at-Home Mom, I talked about what expenses I would be leaving my family with if I were to die today.
Those expenses included funeral costs, personal school loan debt, credit card debt, childcare expenses, and even “costs” of being a stay-at-home mom. I estimated I’d be leaving my family with upwards of $250,000 in expenses, with a good chunk of that being incurred annually for years to come.
When comparing that cost to what a life insurance premium would cost now, there is no question life insurance is the better option. Jenny Life has policies that start as low as $5 per month. That’s just $60 a year. Say I live for another 50 years (just a realistic figure). Life insurance would only cost $3,000 and once I die, life insurance would take over a lot of the expenses left behind. I’d much rather spend the 3 minutes it takes for approval and pay a life insurance premium now, than leave my family in financial stress after I’m gone. Of course, it’s completely your choice if you choose term life or whole life insurance.
Even if my annual premium were $160, like I previously mentioned for a healthy 30 year old, that’s $8,000 over the next 50 years. Compare that to $250,000+ in debt and expenses, and it’s still a no-brainer.
It doesn’t even take long to set up a policy! Now that more and more insurance management software is being introduced to companies all around the globe, it is making it easier for both customers and agents to get policies up and running. So what are you waiting for?! It simply makes more sense to pay a little now than cost your family a lot later.