“I can’t afford life insurance.”
Be honest, if you’re shopping for a policy this misconception may have slipped into your mind.
Not only is this statement incorrect, but chances are if you’re like many Americans, you’re already spending more money on items that far exceed a life insurance policy monthly payment. Let’s take a look at four expenses with long-term values that pale in comparison to life insurance.
1) Car leases: A car is an important purchase. It gets you to work, helps you to run errands, and can drive you across town or the country. You can lease one, on the low-end, for less than $200/month -- most likely a no-frills model. A life insurance policy, worth at least $150,000 for a healthy adult aged 30-45 years old, costs less per month.
2) High-end furniture: Furniture is not only functional, it’s a personal statement of your style. And the more refined your tastes, the steeper the price. Companies like Restoration Hardware charge an average of $4,500 for a leather sofa that will never appreciate in value. If you take care of the piece, you hope it will last a decade. You could easily buy a 30-year term life insurance policy with a value of 30 times the retail price of that couch. Want to have your cake and eat it too? Purchase a whole life insurance policy and take out a tax-deferred loan against the policy to furnish your entire living room.
3) State-of-the-art electronics: Televisions and mobile devices are becoming larger—and so are their price tags. The starting price for a new iPhone 6 averages around $299 (based on a two-year plan with the top three carriers). If you want a MacBook with your shiny new phone, you’ll have to shell out an extra $899. Total price is $1,198, spread out over one-year is around $100/ month. The premium for a 20-year $500,000 term life policy for a healthy, 45-year-old, male, non-smoker clocks in at a modest $55/month.
4) Vacations/Cruises: Taking a two-week vacation is a goal most Americans spend all year working toward. According to American Express, the average vacation expense per person in the U.S. is $1,145 to $4,580 for a family of four. An article, published in Forbes Magazine earlier this year, featured a 50-year old male who had a policy of about $1,000,000 worth of life insurance through his job. Want to guess how much he pays per year for this hefty policy? A whopping $3,200 per year. And the kicker is the article discusses ways he could be paying a considerable amount less for that policy per year.
The truth is we as human beings spend money on things we deem to be important. When it comes to life insurance, the question should not be whether you can afford life insurance, it should be if the items you’re spending money on instead today will have real or equal value tomorrow?
Want to invest your money in an asset that can benefit you now and will appreciate in the long-term? If you can spare a few minutes of your time, you can make this a reality today. Get a quote today.