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Insurance Education

Think you can’t afford life insurance? Your morning latte might be the trick

July 17, 2018

If you don’t have life insurance (or aren’t sure that you have enough of it), what’s stopping you? Is it the whole “facing your eventual inevitable demise” thing? Or have you crunched the numbers on your budget calculator and decided you just can’t afford it? Either way, you’re not alone, but cost—perceived cost, that is—seems to be the biggest factor preventing us from protecting our loved ones with life insurance.


According to the 2018 LIMRA & Life Happens Insurance Barometer Study, 61% of people cite “other financial priorities” as a reason for not purchasing life insurance (either initial or subsequent policies). That sounds reasonable enough…we all have bills to pay, and adding another one to the stack is never appealing. Just to put things in perspective, though, we’re here to:


a. Do a little myth busting about how much life insurance actually costs (spoiler alert: on average, Americans’ perceived cost of life insurance is about triple the actual cost)

b. Point out 6 common expenses that cost more than life insurance probably will, especially if you get covered when you’re young and healthy


OK, how much does life insurance actually cost?


Much like just about everything else you’ve ever shopped for, there are a lot of price points and options when it comes to life insurance. However, if you’re a relatively healthy 30-year-old woman, you may be able to purchase a $500,000, 20-year term life insurance policy for around $208/year. That’s about $17.33/month or $4/day.


Surprised? You’re not the only one...80% of Americans overestimate the cost of life insurance.


6 things that (probably) cost more than life insurance


If you’re that healthy 30-year-old woman from the example above, chances are this list looks at least somewhat familiar. We realize that everyone has different needs and priorities, but if you’re looking for cost cutters, these are some good places to start.


1. The makeup on your face
According to a recent study, the average amount U.S. women spend on makeup and skincare is $8/day. That’s twice as much as the life insurance coverage described above. This is in no way an official claim, but the peace of mind that comes with knowing your loved ones are protected with life insurance just might be better than your bag of expensive lotions and serums at reducing fine lines and stress breakouts.

2. Your coffee habit
We know, we know…every cost comparison tries to take away your coffee like it’s not the only reason you get out of bed some mornings. We’re not saying you can’t have your caffeine fix, but we’d be remiss if we didn’t point out that your grande, skinny, two-pump vanilla latte probably costs as much as it would to help protect your family’s financial well being in the event of unexpected tragedy.

3. Your gym membership
Are you one of those inspiring people who actually uses your gym membership frequently? If so, by all means hold onto it. Physical fitness is such an important part of overall wellness, and if hitting the gym is part of how you achieve it, that’s awesome. But if that tag on your keychain is getting about as much use as the Blockbuster rewards card that’s still hanging there, consider reallocating those funds to an affordable life insurance policy and finding other sources of physical activity, like long walks around your neighborhood, checking out fitness videos online (legwarmers optional), or actually playing next time you’re at a playground.

4. Cable TV
Seriously, we’re not trying to take all the joy out of your life. As television becomes increasingly web-based, though, it’s worth taking an honest look at how much you actually use your cable. The average American cable bill is over $100/month. In many cases, we just pay for it because it’s part of a bundle. You really just want the Internet access, right? But it seems like a better deal to go ahead and get the cable and the landline, too…even though you’re probably paying for multiple streaming services and a cell phone plan as well. 61% of young adults say that online streaming is already the primary way they watch TV. Does that sound like you? If so, consider “cutting the cord” in favor of a la carte subscriptions.

5. The food you throw away
Do you spend a big portion of your income on food? If so, that isn’t necessarily a bad thing, especially if you’re spending it on healthy, quality ingredients rather than greasy takeout. However, food waste is a serious issue in the U.S., with 20% of the food purchased by consumers like us being wasted. A family of four could save up to $1,500/year by adjusting their food purchases to match their food consumption. That’s over seven times the cost of the life insurance policy in our example.

6. Impulse purchases
When’s the last time you made an impulse buy? Maybe you threw caution to the wind and went to the grocery store while hungry (see above for how that usually goes). Maybe the Amazon “best sellers” list lured you in. Maybe you’re the type who just can’t pass up a good deal. (We hate to burst your bubble, but when you buy $100 shoes that are marked down to $40, you’re not saving $60…you’re just spending $40. Unless you actually went to the mall to buy those specific shoes for a specific purpose, but we all know that’s not usually how it works.) Here’s the thing, though: the average American spends a staggering $5,400/year on impulse purchases. You could buy a LOT of life insurance for that.

Suddenly, life insurance seems a lot more affordable, right? Especially when you think about what it could mean to your family if something were to happen to you. It’s important to strike a balance between enjoying the life you’re living and protecting the ones you love, and we’re here to help you find a life insurance plan that supports that balance. You can get a free quote right this minute by clicking here...and if it feels right, you can continue the life insurance shopping process online or over the phone with one of our expert advisors. How’s that for an “impulse buy” you can feel good about?


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