Let’s face it: Talking about life insurance can be difficult. In fact, a 2014 survey revealed that the number one topic Americans hate talking about the most is their personal finances (44%). Coming in at second place was death (38%). Don’t look now, but in a way life insurance combines both of these tough topics! Sounds a little scary, right?
It doesn’t have to be. September is Life Insurance Awareness month, which is a great time to remind ourselves of the positive aspects of life insurance. It’s also a great time to talk to family members about the role term life insurance plays in your overall financial future…and theirs. Here are a few practical and positive ways to start a conversation about term life insurance in your home.
“A term life policy is more affordable than you think.”
If guessing the cost of life insurance was a game on The Price is Right, millennials would lose, big time. According to the 2015 Insurance Barometer Study, millennials overestimated the cost of insurance by a whopping 213%. Gen Xers did better, but still overestimated the cost by 119%. Overall, 80% of Americans overestimated the price of a term life insurance policy.
When you consider the financial safeguards that term life insurance could provide, though, the prices seem straight out of a Walmart Rollback® promotion. While the rates you’ll pay depend on a variety of factors, like your age, the term of your policy, and the amount of coverage you select, check this out:
If you’re between the age of 18 and 50, a $10,000 Direct General Life Insurance policy with a term of 12 months could cost as little as $9.83 per month*. That’s like paying for a Netflix® membership.
That’s a small price to pay to provide financial peace of mind for your loved ones!
“A term life policy helps us wave worry goodbye.”
Have you ever worried about something, only to find out that your concerns weren’t really relevant? Maybe it was a big exam at school that turned out to be easy, or perhaps it was the first time you met your future in-laws. (Turns out, they’re awesome!)
Maybe this sounds strange, but a term life policy is kind of like that. It helps you address — and then move beyond — worries about the financial security of your family in the event that tragedy strikes.
Plus, putting worry in the rearview mirror might actually make you healthier. Cognitive Behavioral Psychologist Dr. Simon A. Rego says that “consistent worrying can have both short- and long-term effects on your well-being.” He adds, “Perhaps most simply stated, worrying is a behavior that steals joy, affecting sleep and decision making.” One way Dr. Rego suggests facing worry is by replacing it with a plan. When it comes to worrying about your family’s financial security, you can begin building a plan with a term life insurance policy.
“A term life policy is something you should consider.”
Do you have adult children, a spouse, or siblings who don’t currently have life insurance? They’re not alone: more than 40 percent of Americans don’t have any.
Talking about your term life insurance policy is a great way to help your loved ones understand the policy’s benefits and your reasoning behind applying for coverage. (For example, a policy can help cover the cost of a funeral, which isn’t a cost you want to burden your family with during such an emotionally difficult time. Did you know that the average cost of a funeral is more than $8,000?)
It’s also a great time to help them recognize the important role insurance plays in their overall financial planning efforts. Sounds like the whole family could be in store for a little less worry!
That wasn’t so bad, was it? Having an honest conversation with your family about such an important topic now is much better than waiting too long and feeling confused or rushed. Take your time, but try to have the conversation. And hey, if you’re lucky, maybe you can catch the rest of The Price is Right.
To learn more about term life insurance or to get help explaining it to your family, feel free to give one of our friendly agents a call at 1-877-GO-DIRECT (1-877-463-4732) or stop by a Direct Auto Insurance location near you!
*Price Per month calculated at Term Premium divided by 12 for Annual policy. Individual term life insurance by Direct General Life Insurance Company, Nashville, TN. Policy 58TL02010713. Premium and other terms will vary by state, the insured’s age, and the selected coverage and pay plan.
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