Note: This post was originally published on July 11, 2017 and has been updated for clarity and accuracy based on current data.
We work hard for the good things in life. We work for money in the bank. Food on the table. Maybe a vacation or two on the calendar every year. We work to buy houses, and we work to make sure they feel like homes for the people we love. To expand our experience, reinforce our identities, and of course, to support our families.
The harder we work, and the fuller our lives and our hearts become, the more we have to protect. It’s easy to convince yourself, in the warm glow of a good life, that love is all you need…but while love is a great place to start, you might want to consider getting life insurance to back it up.
If you think the cost of life insurance means giving up some of those other things you work so hard for, keep reading. Term life insurance (which just happens to be the kind we offer at Our Life Covered) can be surprisingly affordable!
Wait, so what is term life insurance exactly?
There are a lot of options to consider when you’re looking for the right life insurance, but if you’ve already done a little bit of research (high five if you have), two common types you’ve probably come across are term life insurance and whole life insurance.
Whole life insurance is a permanent life insurance policy that provides coverage for (you guessed it) your whole life. It also builds cash value over time. While these benefits are great, whole life insurance can cost a LOT more than term life insurance. We focus on term life insurance policies at Our Life Covered because our goal is to offer competitively-priced coverage during the critical years when your family may depend on you the most.
A term life insurance policy covers you for a set period of time (you know, a term…we try to keep things pretty literal in our industry). Typically, a term is 10, 20, or 30 years. Because of its temporary nature (and therefore the decreased likelihood that a payout will take place), premiums are generally much lower, especially if you’re young and healthy.
Term life insurance doesn’t accumulate cash value, and once the policy term is over, it’s over…just like car insurance, no matter how long you’ve been insured in the past, you have to be insured at the time of the incident (which, let’s be blunt, would be death in this particular case). However, at the end of the term, you may have the option to renew (at an increased rate, because you’ll be 10-30 years older) or convert to a whole life plan for continued coverage.
Get it now, lock it in
Want to know something awesome about life insurance? The younger you are when you apply for life insurance, the lower your rates are likely to be. So if you get a 30-year term life policy now and continue to pay the premiums on time, you’ll still be paying the same monthly fee 30 years from now.
Here’s the best advice we can give: DON’T WAIT.
The younger you are, and healthier you are, the less your insurance will typically cost. And the sooner you work it into your budget, the more it will start to blend in with all your other important expenses, like electricity, lattes, and orthodontic work.
The best reason to act now, though, might be sitting right next to you on the couch while you read this. Or sleeping upstairs on the top bunk. Or the bottom bunk. Life insurance gives you a chance to take care of the people you love for longer, and that’s worth an awful lot more than your monthly premium will probably be.