As we embark on a new year, resolutions often focus on health, wealth, and personal growth. However, one crucial aspect that tends to be overlooked is life insurance. While it may not be the most exhilarating topic, securing the right life insurance policy is paramount, especially if you have dependents relying on you. In 2024, consider prioritizing life insurance for these three compelling reasons.
Life Insurance is Surprisingly Affordable: Despite common misconceptions, life insurance is relatively inexpensive, with more than half of Americans overestimating premium costs. A 20-year, $500,000 term life policy for a healthy 30-year-old male, for instance, averages just $29 per month. For females, the cost is even lower at $23 monthly. While term life insurance has a set duration, its affordability makes it an excellent option for those who may have hesitated due to cost concerns. Notably, Guardian Life allows policyholders to convert their term policies into permanent ones within the initial five years.
Workplace Coverage May Fall Short: While some employers offer group life insurance, this coverage is typically limited to one or two times the employee’s annual income. Experts often recommend coverage equivalent to ten times one’s salary. Additionally, employer-sponsored policies are not portable, meaning they terminate if you leave the company. Individual life insurance provides the flexibility to customize coverage with riders and ensures continuous protection, regardless of career changes. Pacific Life and MassMutual are recognized as top providers for universal and whole life insurance, respectively.
Age Matters: Getting life insurance becomes more expensive as you age, making it advantageous to secure coverage when you’re younger. Waiting can result in higher premiums, and age-related health complications may affect eligibility or increase costs. For example, the average 30-year-old male pays $34 per month for a 20-year, $500,000 term life policy, while a 45-year-old pays an average of $72 per month. Starting early not only saves on costs but also provides peace of mind.
Life insurance might not be the flashiest New Year’s resolution, but it’s undeniably one of the most impactful. Ensuring financial protection for your loved ones in the face of the unexpected is a responsible and affordable step. As you set goals for 2024, make life insurance a priority and take the necessary steps to secure the coverage that aligns with your needs and circumstances.