Learn About Life insurance

Why buy life insurance? Read why it matters.

After losing her husband in an accident, Chanel Reynolds was emotionally and financially distraught. She and her husband had good intentions in regards to getting their financial lives organized, but never completed the task. After the death of her husband, it was up to Chanel alone to figure it all out, for her sake and, more importantly, the sake of their son.

Chanel and her husband did plan ahead for life insurance and she says this is what saved her from ruin. Her husband’s life insurance death benefit allowed Chanel to take time off work, enabled her to hold on to their family home longer and not have to sell it quickly at a big loss, and helped pay for her son’s education. See how little life insurance might cost you – get an instant term life insurance quote.

Why do families need term life insurance?

Families benefit the most from life insurance. Children depend on their parents for shelter, food, clothing, and more. If a parent dies, can the surviving parent easily manage it all alone? What if both parents die in a car accident, for example, who provides for the children then?

Life insurance provides the needed funds to ensure families can continue their standard of living even after the death of an income provider. Life insurance can pay the mortgage on a house, provide food and clothing, and even a college education.

What is the right amount of term to buy?

A common rule of thumb for estimating the right amount of coverage is to buy 10 – 12 times your income.

Term life insurance is the most affordable and straight-forward type of life insurance. It provides coverage at a fixed rate of payments for a specific period of time. The typical terms are coverage lengths of 10, 20, or 30 years, whichever makes the most sense for your individual situation. Your income, how many children you have, if you plan on paying for their college tuition, and if you have a mortgage are the big factors in determining how much coverage you need.

Common term lengths for those with children are 20, 25, or 30 years to ensure the parents are covered through the child’s growing years until they reach adulthood and independence.

How much does term life insurance cost?

The cost of term insurance is relatively inexpensive, especially when compared to other types of insurance such as permanent life insurance, health insurance, and auto insurance. In fact, 80% of Americans overestimate the cost; Millennials overestimate it by 213% and Gen Xers overestimate it by 119%.

How much one pays for term insurance will vary depending upon the individual. Age, health, tobacco use, gender, and family history all play roles in determining the cost of life insurance. Find out for yourself how little term life insurance may cost you by getting a term quote from our partner Quotacy. It takes less than a minute your price is instant – no need to enter any personal information to see premium estimates.

DIY Insurance: What you can do for free

What else can we do to manage 'Life' risk? Insurance in your life you already control? What else turns the dials?

There are many things we do, decisions we make everyday, to turn the risk dial up or down:

  • have a designated driver
  • buckle up, put kids in car seats, or wear a helmet
  • get an ergonomic keyboard
  • seek out mental health treatments like counseling or medication
  • go to the gym even though we have a busy day?

Health

Staying healthy can keep us, well, healthier, according to a British Medical Journal Website article on a Swedish study.

  • Living a healthy lifestyle into old age can add five years to women's lives and six years to men's.
  • It is well known that lifestyle factors, like being overweight, smoking and heavy drinking, predict death among elderly people.
  • Of the leisure activities, physical activity was most strongly associated with survival.
  • The average age at death of participants who regularly swam, walked or did gymnastics was two years greater than those who did not.

Happiness

Being happy can influence how happy we are, but other things that make life rich and 'insure' a high quality of life:

Money is not necessarily the key to happiness: A 2010 study from Princeton University's Woodrow Wilson School found that, up to $75,000, each boost in income increased participants' happiness. But after that, bringing home more income ceased to matter in their overall life satisfaction.

According to the World Happiness Report

  • Mental illness is the single most important cause of unhappiness.
  • The US is ranked #17 in Happiness
  • Which factor has “a strong positive link with life evaluations"? ... having someone to count on.

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