If you’ve ever wondered is term life insurance worth it, you’re not alone. Having hard, what-if conversations about such a heavy topic is never fun, so many people avoid life insurance talks altogether. However, even if it’s a little uncomfortable to think about what would happen to your loved ones if you and your income were no longer there, it’s worth discussing. Here are some ways to start a conversation and reasons to consider purchasing a term life insurance policy as soon as possible.
What Is Term Life Insurance?
You might be wondering what is term life insurance? Or what is the difference between term and whole life insurance? For starters, term life insurance (like most life insurance policies you’ve read about) helps protect your loved ones financially in the event of your death. Term life insurance policies generally have lower premiums than whole life policies and do not build up a cash value. This means you can plan ahead and determine exactly how much coverage you want, whether that’s $10,000, $25,000 or another amount. If you die, your loved ones would receive that pre-determined amount in accordance with your policy provisions and so long as your premiums were paid. Some life insurance policies, like the one Direct Auto Insurance agents offer from Direct General Life Insurance Company, don’t even require a medical examination; you just need to answer a few health-related questions and your application can be approved instantly.
Term Life Insurance: Real-Life Examples
If you’re wondering if you really need term life insurance, here are few real-life scenarios to consider:
- You have a stay-at-home spouse and your family depends on your salary to pay the bills. If you die, a term life insurance policy could help replace your income for a time, allowing your family to maintain the same standard of living until they can make necessary adjustments.
- Your family is close to paying off two car loans and having more financial freedom. With the payout from a term life policy, your loved ones could pay off remaining debt.
- You recently welcomed a beautiful baby into the world. If you were to be involved in an accident, a term life insurance policy could help start a college fund for you child.
- Funeral and burial costs can add up quickly, creating a financial burden for your loved ones. In fact, the National Funeral Directors Association pegged the median cost at $7,640 in 2019. But a term life insurance policy can help cover any final expenses, giving your family time to grieve properly and focus on other matters.
How Much Does Term Life Insurance Cost?
The price you’ll pay for term life insurance depends on a number of different factors. Among them are your age, your health, how much coverage you need, and the length of your policy.
If you are young and in excellent health, you can expect to pay less money than someone much older. If you are single or living without kids, you might not need as much coverage as someone with multiple kids, meaning your premium is lower. The price of your policy will also be affected by whether you pay upfront or in installments, or if you opt for six months of coverage vs. twelve. This is the beauty of term life insurance – you can find something that fits your budget and needs. With Direct General Life, a term life policy costs less than $1 per day, meaning you could get coverage by simply not spending that dollar bill on a soda in the breakroom every day at lunch.
How to Talk About Life Insurance
Studies have shown that people do not like talking about death or money, and life insurance combines the two topics. So how do you talk to your family about life insurance? Here are a few helpful tips:
- Pick an appropriate time and place: Don’t bring up such a heavy topic out of the blue at a restaurant. Be tactful with the timing. For example, if you recently had a major change in your life, like the birth of a child or the death of a relative, your loved ones may be more inclined to have a talk.
- Keep it positive: Don’t focus on the negative side of the discussion. Keep the conversation positive, focusing on future plans and goals. For example, if you recently had a child, focus on wanting to be able to send them to college and make sure they’re cared for, no matter what.
- Crunch the numbers: Consider how much money you’d need to help support your family to achieve its goals. Paying off debt can take some time. College isn’t cheap. Figure out how much coverage you want compared to the small sacrifice it would require in your budget now.
Get a Term Life Insurance Quote from Direct Auto
Direct Auto Insurance doesn’t just help protect your car. We offer affordable term life insurance* to make sure you can keep your family financially protected. Give us a call or stop by one of our nearby locations for a free quote!
*Individual term life insurance by Direct General Life Insurance Company, Policy Nos: 58TL02010713, 12400 (OH), 12802 (WA) and in Michigan, by National Health Insurance Company, Policy No. 12815. Per day amount based on annual premium for insured 18-50 years old with a $25,000 policy. Premium will vary by the insured’s age and the coverage level selected. Policy terms and conditions apply.