Worthwhile Financial Goals: Securing Life Insurance

As you consider the best financial goals for this year, it’s essential to include life insurance in the discussion. While it may seem morbid to think about, life insurance is a critical financial necessity to ensure your loved ones are taken care of if anything happens to you. Finding term life insurance quotes becomes challenging as you age, so it’s best to make arrangements early.

Here are some simple steps to help you invest in life insurance this year:

1. Assess Your Health

Gen Xers and Boomers, who are nearing retirement, often feel unprepared for their financial futures, with health and wealth being critical aspects of their well-being. Many life insurance companies don’t require health background checks, but these may not offer the best terms. Opt for a company that requires a health checkup, as they often provide better upfront costs and benefits. If your health is poor, improving it can lead to lower premiums. For example, losing weight and managing conditions like high blood pressure can reduce your insurance costs. Programs like John Hancock’s Vitality offer savings and rewards for maintaining a healthy lifestyle.

2. Don’t Treat It as an Investment

Purchase life insurance for its intended purpose: as insurance, not an investment. Term life insurance is often recommended over whole life insurance, especially for young adults, because it is cheaper and provides adequate coverage.

3. Determine How Much Coverage You Need

Consider how much money your loved ones will need after you’re gone. This includes current bills, funeral costs, and future needs of your spouse and children. Even if you feel healthy and expect to live to retirement age, it’s wise to prepare for the worst-case scenario with the right level of term life insurance. If no one depends on you financially, or if your employer provides a good life insurance package, you might not need additional coverage.

4. Budget for Insurance

Paying for life insurance through work benefits is often the easiest method. When the cost is deducted from your paycheck before you see it, you’re less likely to miss it. Term life insurance is quite affordable, with many plans costing between $200 and $400 per year. If you can save just $20 per month, you’ll be able to cover most term life insurance plans.

Paying for insurance, which doesn’t feel like an immediate need, can be challenging. It’s similar to paying for car or health insurance—you might not need it often, but you’ll be grateful to have it when something goes wrong. For term life insurance, it’s better to have coverage than to be without it, especially if you have dependents relying on you.


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