It’s a common story.
You thought you had everything figured out. Solid job with benefits? Done. Life insurance policy included? Excellent. Then came the layoff. Not only did you lose your income, but that life insurance policy? Gone too. Suddenly, you’ve found yourself with a mortgage, kids, and no coverage protecting your family if something happened to you. The simple fact is that this scenario can be avoided by simply finding a term life insurance policy.
In a 2024 study by research and consulting organization LIMRA, 7 in 10 Americans said they believe they need life insurance. And yet, the same study revealed just 1 in 4 people with coverage only have what their employer provides, making them vulnerable in situations of job turnover.
If you've been putting off thinking about life insurance, you're probably telling yourself one of these things:
"I'm healthy, I don't need it yet."
"It's too expensive."
"My work insurance is enough."
"I'll do it later."
These are excuses told time and time again, but this shouldn’t be a barrier for you to move forward with a term life insurance plan. Life insurance rates are based on your health, and waiting could cost you significantly more or make you uninsurable if health issues develop.
The 35-year-old who applies today will pay a fraction of what they'd pay at 45, even if they're still healthy. Moreover, most people overestimate the cost of term life insurance by about three times. A healthy 30-year-old can often get $500,000 in coverage for less than the cost of a couple of streaming subscriptions.
For those of you using your employers’ life insurance option: Is it portable? Can you take it with you when you change jobs, get laid off, or retire? For most people, the answer is no. And even if you stay with the same employer, is $50,000 or $100,000 enough to replace your income, pay off your mortgage, and fund your kids' education?
I understand – thinking about and purchasing life insurance may not be uplifting or exciting. But putting it off until later doesn't guarantee you'll still be insurable. A diagnosis, an accident, or even routine health changes can dramatically impact your eligibility and rates.
The good news? Term life insurance is simpler and more affordable than most people think.
What Term Life Insurance Really Does
Think of term life insurance as a financial safety net with a specific job description. It's not about you; it's about making sure the people who depend on you can maintain their lifestyles if you're no longer there to provide for them. If it’s ever needed, your family could find comfort for years to come.
Mortgage Protection
This is often the first thing people think about when considering a life insurance benefit, and for good reason. Your home is likely your family's biggest expense each month. Term life insurance can help ensure that if something happens to you, your family doesn't have to worry about losing their home on top of everything else. The coverage can often pay off the remaining mortgage balance completely, giving your loved ones one less thing to worry about during an already difficult time.
Income Replacement for Surviving Family Members
This is where term life insurance really shows its value. If you earn $75,000 a year, your family isn't just losing that income for one year. They’re potentially losing decades of earnings. This isn't about making your family rich; it's about helping them to maintain their lifestyle, pay the bills, and adjust to their new reality without immediate financial panic. A good rule of thumb is to have coverage worth 10-12 times your annual income. That means if you make $75,000, you'd want $750,000 to $900,000 in coverage.
Retirement Savings Replacement If You Die Early
Here's something most people may not know about life insurance: If you die before retirement age, your family loses your current income and all the retirement savings you would have accumulated. If you're 35 with $100,000 saved, but you need $1 million for retirement, there's a huge gap. Term life insurance can help bridge that gap, helping to ensure your spouse has the resources needed for their later years.
Legacy Planning for Your Family
This is where we shift from protection to opportunity. Term life insurance can help during a time of loss, but it can also help your family build their own legacy. The death benefit can help fund your children's college education. It can provide down payments for your children’s first homes. It can even give them seed money to start businesses or make investments that can help set them up for long-term success. Instead of your family scrambling to survive, they have resources to live out your dreams for them. That's a powerful gift.
Take the Next Step
You've got the information now, and I hope I’ve been able to shed light on the power, and affordability, of a term life insurance policy. The only question left is: What are you going to do about it?
Getting covered is one of the most responsible, loving things you can do for your family. And the peace of mind that comes with knowing they'd be taken care of? That's worth more than any premium.
Ready to take the next step? Learn more >
