Protect What Matters Most: Why Life Insurance Is Important

cute kids

Written by:

Reviewed by:

Picture of Jake Tamarkin, MBA

Jake Tamarkin, MBA

Jake is a nationally-licensed insurance agent with a Masters in Business Administration and CEO of Everyday Life. His expertise has been featured in: Investopedia, Life Insurers Council, Insurance Thought Leadership, Life-Annuity Agent, and Insurtech Insights.

Key Takeaways:

  • You shouldn’t pay for life insurance if you don’t need it, but do you know why life insurance is important?
  • Term life insurance is an excellent way to show your loved ones that you care about them. 
  • The best term life insurance won’t cost you an arm and a leg. An affordable term policy can help you protect what matters most.

The life insurance industry doesn’t have the greatest reputation. So, why is life insurance important? It comes down to risk management. When done right, it can provide peace of mind at a very affordable price.

If you’re over the age of 18, you’ve probably had someone try to sell you life insurance at some point in your life. 

The trouble is that the industry has a reputation for having pushy salespeople. 

If you’ve experienced their aggressive sales tactics, it might have turned you off to the idea of buying life insurance at all.

But not all life insurance companies are like that. Here at Everyday Life, we won’t push you to buy more insurance than you need.

We want you to have the best coverage at the best price. If you’re on the fence about buying term life, you’re in the right place. Here are four reasons it’s a small price to pay to insure what matters.

Table of Contents

What is Term Life Insurance?

Before we jump into why it’s worth having, let’s talk about what life insurance is and how it works.

Life insurance is an income replacement tool. 

That’s it.

Some insurers try to make it complicated by adding cash value, but life insurance shouldn’t be a money-making scheme.

There’s only one job a life insurance policy has: To provide a financial safety net for your loved ones.

Because let’s face it…

When someone relies on your income to pay the mortgage and put food on the table, the financial impact of your death could be devastating.

A term life policy provides life insurance coverage for a certain amount of time, usually ranging from five to 30 years. If you pass away during the coverage period, your beneficiaries will receive a payout from the life insurance company.

4 Reasons Why Life Insurance is Important

Life insurance isn’t a guaranteed payout. It will eventually expire or become too expensive to continue paying for. Even though there’s a good chance you’ll die without coverage, here are four reasons why life insurance is important:

  • It’s affordable
  • It protects what matters
  • You won’t need it forever
  • It’s money well spent

1. It’s Affordable

The Insurance Information Institute found that adults between the ages of 22 and 38 overestimated the cost of life insurance more than 5x what it actually costs.

If you’ve been putting off buying a policy because you think it’s expensive, think again. Term life is an affordable option for most people.

Your age and health history are major factors that affect the cost of life insurance.

You know what that means?

The younger and healthier you are when you buy a policy, the cheaper it can be. Plus, a custom plan from Everyday Life is usually at least 50% cheaper than a typical policy from another company.

2. It’s an Easy Way to Protect What Matters

Term life insurance is an excellent way to show your loved ones that you care about them. The American Council of Life Insurers reports the average policy is worth $168,000.

If you have a family that relies on your income, they’ll need that money to help make ends meet after you’re gone. Your beneficiaries can use the cash for anything they want, but the most common uses are:

  • Funeral costs
  • Medical bills not covered by health insurance
  • Paying federal or state estate taxes
  • Mortgage or utility bills
  • Credit card debt or other loans
  • Childcare
  • College education for your kids or grandkids

3. You Won’t Need it Forever

With term life, eventually, your term expires. Your beneficiaries don’t receive a payout if you die after your policy ends.

That leaves many people asking the question: Why bother with life insurance if you may never use it?

Because life insurance isn’t meant to last forever

You should make sure you’re covered until your kids head off to college and are living on their own or until you can “self insure” by having enough savings to cover your insurance needs.

After all, why spend money on life insurance if you don’t have to?

4. It’s Money Well Spent

With any luck, you won’t need your life insurance policy. Some feel that the money spent on insurance premiums is like throwing money away.

But is it?

Think about the peace of mind you get from having a term life policy. You might spend $5,000 to $7,000 in monthly premiums over the years.

But you can rest assured knowing your family will be protected if the worst should happen — and that’s money well spent, even if you outlive your policy.

Why You Shouldn’t Wait to Buy Life Insurance

If you’re part of the 66% of Americans reported by LIMRA that needs life insurance, don’t wait to buy a policy. 

It’s easier than you might think. If you have kids or have a spouse, partner, sibling, or aging parent that depends on your income, life insurance can provide comfort in a world of uncertainty.

Looking to get life insurance? Check out The Ultimate Life Insurance Calculator to see how affordable it can be.

Disclaimer: The comments, opinions, and analyses expressed at Everyday Life are for informational purposes only and should not be considered individual investment, legal or tax advice.

Thank you!

Here is your personal referral link.{email_address}&utm_campaign=refer_a_friend&referrer={firstname}_{lastname}

Share it with your friends!