I have been told that it is always better to buy 10 years too early than 1 minute too late.

The Numbers

This has always resonated with me as it relates to securing my retirement future and protecting my loved ones. There is still a huge misconception of what insurance can do for you and the associated costs. As of 2019 45% of the population feel they do not have enough money to start a policy. This is simply not true! Three out of four people say they have a good understanding of life insurance – but do they, really? When it comes to the cost… they do not!

The Cost

When asked how much the yearly cost would be for a 20-year term $250,000 level term life insurance policy for a healthy 30-year old: 80% of individuals significantly overestimated the cost. The average cost guessed by those who ‘understand insurance’ was $400 a year, and those under the age of 25 – who often pay the least for coverage, said it would cost $600 a year. In fact, one in four persons thought it would be $1,000 a year or more. But, the true cost for a $250,000 policy is about $160 a year. Yes, you read that correctly. That is a little over $.40 a day or $13 a month. The cost-benefit analysis of not securing protection proves the risk is not worth it. To put the cost in perspective, here is what the cost looks like compared with what many people spend per month on: cell phone – $61, cable TV – $64, coffee – $80, and take out lunch – $140. Trimming just a few dollars from any of these would make getting – and affording – life insurance a no-brainer.

“If I die, why do I need money?” YOU DON’T… But your family, or your business might

The Bonus

What is even more misunderstood is the ability for life insurance to be a retirement vehicle to secure your financial future. Structured correctly with the right agent, life insurance can create a guaranteed income for life. That’s right, income that you cannot outlive. Your principal is always protected and you cannot lose any of your funds – all while maintaining moderate returns on your investment. Permanent policies build a cash value and guarantee a lifetime income that is tax-free. Life insurance allows you to build retirement wealth, repurpose your retirement, and eliminate financial stress in your retirement years. It is never too early to beginning protecting yourself and your loved ones.