You probably spend a lot of time worrying about your family; am I right? You worry about their safety—at home and in their vehicles. You worry about your children's nutritional intake, health, future or present college expenses, and a myriad of other things. But, if you're not spending even a fragment of that time worrying about how your family would be impacted by your untimely death—no matter how uncomfortable it is—you are doing them a disservice.
Most people don't like to think about their death; it's unpleasant, but sweeping it under the rug will only hurt your left-behind loved ones if the worst happens. Unfortunately, this is the reality of many Americans today. According to LIMRA, four out of 10 Americans do not have life insurance. The reason why many people decide to forgo life insurance altogether or fail to increase their coverage is because they are under a misconception that to do so might be too expensive. In fact, this is exactly what 65% of Americans believe. But, I have great news for you: term life insurance may be in your budget!
A healthy, 30-year-old male can get a 20-year, $250,000 Term Life policy for approximately $160 a year, which breaks down to $13 a month. Yep, you read that right—$13! To put this in perspective, let's take a look at eight things that you might be spending money on that are more expensive than $13 a month:
1. Date Night
I know, date night is important, and I'm not saying that you should eliminate it altogether, but if you go out for dinner and a movie every weekend, you are spending somewhere in the neighborhood of $280 per month. Think I'm over-exaggerating? Do the math: two movie tickets at $10 each + $50 dinner; multiplied by four nights per month. Yup! $280. So, instead of going out for date night each weekend, you could spend one date night at home and save yourself $70—more than enough for a Term Life policy!
2. Happy Hour
Depending on where you live and what your drink of choice is, on average, one adult beverage at happy hour can cost between $2-$5. Eliminate about four drinks per month and you've just saved enough to protect your family's future!
There's something about a pair of designer shoes that just makes you feel like a million bucks, right? Oh, maybe that's just me! Anyway, a pair of designer shoes or jeans can easily cost more than $200. Even if you're not buying designer clothing and shoes, multiple less-expensive impulse buys can quickly add up. Either eliminate one monthly clothing purchase altogether or substitute with a reduced-priced buy, and you'll have more than enough to purchase a Term Life policy.
4. Video Games
With services like Gamefly that allow you to rent as many games as you want for as little as $0.54 a day (about $17 per month), there is no need to purchase video games for $50 each for the game lovers in your family. Instead, you can provide them with financial security as a much lower price.
5. Designer Coffee
Did you know that, on average, Americans spend $1,092 a year on designer coffee? I think we just found that $16 per month! You don't have to give up your beloved pumpkin spiced latte completely, but cutting back will free up enough funds to allow you to invest in Term Life insurance.
6. Unused Gym Memberships
If you pay for a gym membership and use it regularly, great, keep it; being active is critical to your well-being and overall health. However, if you're paying $50 a month for a membership and you haven't stepped foot in the gym in more than six months, maybe it's time to reconsider this expense, and substitute it for insurance that will give you peace of mind.
How many TVs do you have in your home? Do you need them all? I know it can be tempting to take advantage of the Black Friday sale on 60-inch TVs, but that money could be used to cover several years of your life insurance premiums. It can be tough to tell your child 'no,' when they ask for that $600 tablet, but maybe instead of buying it outright for them, you can encourage them to earn half of the money by mowing lawns or doing odd jobs to offset the cost, and put the savings toward a term life policy. This is a win-win; your child's future is protected in the event of your untimely passing, and they learn valuable life lessons about earning the things that they want!
8. Cable/Satellite Channels You Don't Watch
Have you ever flipped through your cable or satellite channels and thought to yourself, "with all of these channels, why is there never anything good on?!" And with the price of cable television packages these days, you are likely paying a tiny fortune for hundreds of channels you don't even watch. Consider downgrading your channel package for a less expensive one, and put the monthly savings toward a valuable term life insurance policy.
These all seem reasonable, right? You don't have to live like a pauper in order to secure your family's future. Minor adjustments and sacrifices to your life now can ensure that your family doesn't have to make very large adjustments if the worst happens.