What can a life insurance policy offer you right now?
Replace your earned income
leave money to replace the loss of your essential income
Take care of the kids
leave money for childcare and education
Help pay for home expenses
leave money for your mortgage so they don’t have to move
leave money to fuel the dreams of those you love
Secure your legacy
leave money to benefit a charity or cause you care about
Cover funeral and final expenses
leave money for your memorial service and final expenses
Cover personal debt or
leave money to unburden debt on those you leave behind
Offset estate taxes
leave money for your heirs to pay taxes due on their inheritance
Between sickness, bullies, and healthy meals, Mama Bears protect their cubs—no matter what comes between them. As a parent, how will you protect them if the unimaginable happens?
We get it. These are thoughts we’d all rather push far out of our minds. However, acknowledging our mortality is an essential part of motherhood. Honestly, what would your family do if something happened to you?
Here are some not-so-fun facts: According to the CDC, in 2017, 595,930 people died of cancer and another 146,571 from accidents in the United States. These are morbid numbers we’d rather ignore, but as parents, we no longer can.
One of the best ways to ensure your family’s financial security is with life insurance. But do we all really need it, or could it just be a waste of money better used elsewhere?
Let’s find out.
I’m Young & Healthy. Do I Really Need It?
In most cases, yes! In fact, being young and healthy is the best time to lock yourself into a fantastic, affordable plan. Life insurance companies want clients that are in their prime and keep their rates low to attract them. Expect rates to be significantly more affordable now than they will be as you age and health issues start popping up.
Once you’ve secured your monthly premium, it won’t change for the duration of your term. Locking in rates while you’re healthy also means avoiding the chances of waiting until it’s too late altogether. Any diagnosis of a chronic health condition can drastically raise quotes, and significant illnesses, like cancer or heart disease, can cause them to skyrocket to prices that are completely out-of-reach.
Even if you have the means to acquire a plan at a high cost with lower returns after a diagnosis, your family will likely only receive a fraction of what they would have had you secured a plan while healthy. Snagging life insurance now eliminates this risk so your family receives every penny they deserve.
What If I’m a Stay-At-Home Mom?
They say being a stay-at-home mom is one of the toughest jobs on the planet. Guess what? They’re right in BOTH ways—it’s tough and it’s a legitimate job, even if you don’t bring home a typical paycheck.
In fact, if you were to add up all the jobs SAHMs do on a daily basis like being an on-call chef, chauffeur, housekeeper, therapist, tutor, janitor, personal shopper, and so much more, the annual salary would add up to a staggering $162,581 in 2018.
Even if you have a spouse or partner that makes a sizable income, losing you is seriously going to add up. Even if they can cover the day-to-day childcare needs, where is that money ultimately being taken from? College funds? Sports camps? Mortgage payments?
There’s no way to ever replace Super Mom, but during the most difficult time of their lives, imagine giving your family the gift of financial security.
Is it Worth the Cost?
If you can secure a monthly premium while you’re still healthy, for the majority of parents, acquiring life insurance is incredibly affordable. In fact, some plans for term life insurance are as as little as $7/month. The peace-of-mind alone is often more than worth the small price, but the actual monetary return can help make one of the worst moments in your family’s lives infinitely easier.
Though rates can vary depending on your age, gender, health, lifestyle, etc., for a 20-year term life insurance policy a healthy 30-year-old woman can expect to pay on average about $208 annually for a $500,000 policy. That breaks down to a measly $17/month.
Here are just some of the things life insurance can cover in the event of your death:
Mortgage or Rent Payments
It’s also completely tax-free, a perk you won’t get if you plan on passing money down through your estate. Wouldn’t you rather your children receive a size-able payment, and not the government?
Who Doesn’t Need Life Insurance
Though it’s rare, there are some situations in which securing life insurance simply isn’t necessary, even as a parent. Here are the most common reasons why skipping coverage might be the right choice.
Your Family Has the Means
If you and your family have a substantial, stable amount of wealth—or your spouse makes a very generous income and has excellent life insurance, you frankly may not need to throw additional money into an unnecessary pot. If you are confident that the financial future of your spouse and kids is secure in the event of your death, the cash otherwise spent on a monthly premium could be better used elsewhere.
Before you decide with certainty that your family holds enough wealth to comfortably sustain your family, carefully discuss this decision with a financial planner. Even if you’re in the 1%, you may be surprised how quickly cash can run out in your absence. One extra bill might be worth the additional comfort.
Let’s be real. Unlike things like paying rent, catching up with bills, and eating, we simply don’t need life insurance to survive. Though it is possible to secure quality life insurance for $7/month, even that can add up.
Just because cash is tight, don’t assume affordable life insurance is out-of-reach. Many are surprised by the small sum and consider it worth the peace-of-mind. However, sometimes you have to take risks to save money, and foregoing life insurance might have to be one of them for now.
If you are confident that life insurance is currently unnecessary for your family, there is still planning to do. Not having life insurance makes completing a final will even more important than ever. No matter the reason you’re skipping life insurance, legally declaring exactly how you’d like your possessions and financial resources divided—not to mention custody of your kids—is beyond crucial.
Chances are though, securing life insurance is not only the right move for your family, but the financially wise one as well. From the second you found out you were expecting, to far past them leaving the nest, they’re your babies, and nothing is more important than protecting them.
Convinced that life insurance is the right decision for you and your family? Download the JennyLife app today to secure incredible, A- rated life insurance for as little as $7/month in minutes. No exams or doctor’s appointments necessary. After all, as a parent, aren’t you busy enough?
To be covered, or not to be covered. That is always a complicated question.
If you have a family, what’s more important than their long-term protection—no matter what surprises life has in store? Many assume that getting complete life insurance coverage is the best way to ensure your family’s financial security, and often they’re right.
However, that doesn’t mean life insurance coverage is the right choice for every person and every family. Though coverage does provide plenty of substantial benefits, there are some drawbacks too.
So how do you know if life insurance is the right choice, or if it’s better to skip it altogether? Here are some of the top advantages—and disadvantages—of having life insurance coverage.
The Advantages of Having Life Insurance
Your Family Is Protected
Like it or not, life is unpredictable. As a parent, it’s part of our job to prepare for those unpredictable times. Whether you’re newly pregnant, the supreme soccer mom, or even an empty-nester, securing life insurance guarantees your child’s financially secure future.
Losing a parent or partner is challenging enough. Compound that already staggering emotional loss with financial uncertainty and the burden can become unbearable. However, a life insurance payout can go towards mortgage payments, replacing lost income, debts, college, and so much more.
Even if it’s never needed, securing life insurance not only takes a massive weight off your shoulders, but that of your family’s as well. Stop thinking about the what-ifs so you can focus on life’s more important things.
Tax-Free Financial Benefit
If you were to pass away, wouldn’t you want as much money as possible to go towards your family—and not to the government? With a life insurance payout, the money your family receives is almost always completely tax-free, with a few exceptions.
That means if you take out a $500,000 life insurance policy, your beneficiaries will see every eligible penny. However, money transferred to your children through an estate would have a sizable estate tax applied. Arranging for the majority of the payout to be paid out through life insurance essentially means more money for your family.
It’s Easier to Secure Than Ever
Long gone are the days of having to dig up long lost medical reports, or physically shopping around to countless insurance companies comparing quote after quote.
Today, we can easily compare dozens of high-quality life insurance quotes almost instantly online and through easy-to-use apps—sometimes without even needing a doctor’s visit. With a family to care for, who has time for that?
Disadvantages of Having Life Insurance
For many of us, just one more expense can be one expense too many. If you’re living paycheck to paycheck, sometimes it’s necessary to take a gamble and go without something we don’t literally need to buy.
Though you may be surprised at the affordability of life insurance plans, getting life insurance can become even less attainable if you’ve been diagnosed with an illness like cancer, have a chronic health condition, or recently had a drunk driving arrest. Monthly premiums can then quickly skyrocket making life insurance financially inaccessible.
Life insurance is a wonderful luxury to have, but it’s not worth bankruptcy.
Even if acquiring life insurance has become easier than ever, it can still be a pain. Especially if you have extenuating circumstances like poor health or a criminal record, there can be hoops to jump through, health insurance options to compare, numbers to punch, budgets to consider, etc.
As a parent, we already have a million and one new things to figure out constantly. Who’s driving the carpool? Can I fit in yoga? How did Ella’s hands get so sticky? Even if the process of acquiring life insurance has been simplified, it’s still one more thing to do.
It’s Not Always Necessary
Honestly, some of us simply don’t need it. You’ve done the math, researched all possible financial scenarios, and you’re confident in your family’s financial security in the event of your passing—even without life insurance. Why throw money away every month for something you truly don’t need?
But even if your last name’s Hearst or Rockefeller, ensure you’ve crossed all those t’s and dotted the i’s before skipping insurance. Completing an updated last will and testament stating where every allotted dime will go and how it’s to be used is absolutely essential.
For the majority of families, obtaining life insurance is undeniably the best way to ensure complete future financial security. Despite some of the frustrations, if it’s possible to get coverage and you even think it’d be beneficial, it’s almost always worth dealing with the disadvantages.
With JennyLife, it’s also easier and more affordable than ever. Protect your family with premiums starting at low as $7 per month. Download our app today on Apple or Android and get a quote from an A-rated life insurance carrier in minutes. No doctor’s appointments, exams or blood tests needed so you can spend more time focusing on what matters most.