Life insurance is one of those things that we kind of know we need but many of us don't want to deal with getting right away. Sometimes it's hard to even think about life insurance because for many people, the whole idea of getting life insurance is scary or morbid.
"Having life insurance is protection for you and your loved ones that can minimize or potentially eliminate financial distress."
Perhaps, you feel like you are young and have plenty of time or you might even feel like, if something were to happen to you, there would not be any major financial impact. Well if you've ever felt any of the above, I'm here to set the record straight.
A different way to think about life insurance
Life insurance is not something to be afraid of at all. Instead, look at it this way - having life insurance is protection for you and your loved ones that can minimize or potentially eliminate financial distress.
And it's something you want to seriously consider especially if you have kids or dependents who rely on your income, have shared financial obligations with a significant other, have debts like a mortgage or student loans, are a stay-at-home parent or want to leave something to your kids (this is one way in which people transfer their legacies and create generational wealth).
For instance, as a mom of two small children with a small business, I have a huge impact on my family financials, and it's not just tied to the money I bring in with my business. It's also from the cost of all I do in my household. Let me explain!
The cost value of all you do & why life insurance matters
One day I sat down to really calculate what the cost value of all of I do for my family and I was surprised... shocked even. I added in all my jobs; Watching and teaching my kids (Job title: babysitter/teacher), cooking for my family (Job title: chef), cleaning my home (Job title: housekeeper), driving my kids around (Job title: car service) and determined that if I were to hire another me to do all of these things that I currently do for my family, it would cost me almost $70,000 a year!
This alone is a huge financial impact if (God forbid) something were to happen to me, and I didn't even include my other annual financial obligations, for instance, my kids’ tuition or our household bills and mortgage.
This is why life insurance is a non-negotiable for me. My 20-year, $500,000 policy will help ensure my family is protected financially and can help to cover several years of the loss of my value and income. If you are the sole or primary breadwinner then putting yourself in this scenario makes having life insurance even more critical for you.
Life insurance as it relates to you and your family’s long-term goals
What are some of the biggest long-term financial goals you currently have?
Personally, I’m saving for retirement and my kids’ college education. I have a vision of exactly how I want to retire in my head that I need to get to and similar to the gift my parents gave me, my husband and I have decided that we will be paying for our kids’ college education in full, wherever they choose to go.
But again, if something were to happen to me, these goals could very well be thrown out the window for me, my husband and my children if both my spouse and I don't have a life insurance policy in place. This could mean a difficult retirement for my spouse and student debt for my children. All scenarios I don't want, and that’s why I have life insurance, in addition to my savings and investments, as a safety net.
Make the process simple
The truth is life can be hard and unexpected situations happen but it's better to have a plan in place, and one key element of your plan should be getting life insurance, and it doesn't have to be a complex process.
I recently discovered Haven Life, which offers a super simple, stress-free and affordable way to get term life insurance to help you protect your family. The best part is that they recently became available in all 50 states and you can apply online and find out immediately if you’re approved for a policy. Plus, you may not even need to take a medical exam. (This is determined by the health information you provide in your online application.)
They also offer a free online needs calculator, so if you’re just starting your research and aren’t sure how much coverage you need, check that out as a first step. Things like loss of income, mortgage payments, and other major recurring expenses are all things you’ll need to factor into getting an adequate policy. I got an estimate for how much a policy would cost someone at my age and health status, and a 20-year, $500,000 policy would start at about $19 per month.
Getting life insurance is typically a 4 to 6-week process with tons of time spent on the phone with an advisor, mailing documents back and forth and answering what seems like endless personal questions. And that doesn’t include the time needed to complete a medical exam.
This process is not only incredibly simple, it's painless!
This post is sponsored by Haven Life. Opinions on life insurance and its importance are my own.
Haven Term is a Term Life Insurance Policy (ICC15DTC) issued by Massachusetts Mutual Life Insurance Company (MassMutual), Springfield, MA 01111 and offered exclusively through Haven Life Insurance Agency, LLC.