7 Everyday Things That Cost More than Term Life Insurance

We spend much of our adult lives worrying and planning for what might happen. Adults and parents work hard to ensure families have food on the table and a roof over their heads. Unfortunately, if they can no longer provide, the family is left with the burden. We all assume our death to be far off in our future, so many put off life insurance, assuming the cost is too high and that that money could be better spent in the present, yet quite the opposite is true.

In fact, a recent study conducted by LIMRA, found that 25% of Americans said they need more life insurance, while only 10% planned to purchase it within the next year. The primary reason 63% provided, was cost, with 80% of them overestimating the cost of life insurance. The truth is, if you’re in fairly good health, life insurance is typically one of your cheapest investments, costing many as little as $15/month.

Just to put things in perspective, here are a few consumables we Americans spend more money on every day which actually cost more annually than a term life insurance policy.

Technology- We have all come to rely on technology, counting it has a critical part of our everyday lives. Now, no one is saying that you can’t go out and purchase the latest version of your iPhone; we all have our priorities and no one else should define the order of your list of priorities. But a new 55” LED TV costs about $800. That’s enough to cover approximately 5 years of term life insurance premiums! iPads can cost upwards of $550, which is about 3.5 years of premium payments.

Games – Speaking of throwing money at technology, let’s discuss video games for a moment. The average, newly released video game will run you about $55. Consider the lasting effects a life insurance policy has over a few months with a brand new game. We’re not saying you shouldn’t spend money on that exciting new release; just maybe consider waiting a few months and getting it at the used game store. Your loved one’s financial security will benefit from your decision.

Cars – Americans love their cars and we at Vista Life Plan are no different. But, you can spend a little smarter now to offer your entire family the luxury of knowing they’re secure, should you pass unexpectedly. By spending just $3,000 less on your next automobile purchase, you stand to save $500/year on a 6-year loan with 0% APR.

Food – According to a 2015 survey conducted by Visa, Americans spend, on average, $2,746 per year on lunch, with a large portion of that spent on eating out. That comes out to $53/week just for lunch! The National Resource Defense Council also reported each household spends approximately $529/year on unwanted snacks. Think of all the ways your family could better spend that money.

Alcohol & Tobacco- The United States Department of Agriculture Economic Research Service’s most recent poll shows the average American spends 2% of their discretionary income on alcohol and tobacco. They say a “glass of wine a day keeps the Doctor away,” but we all know the lasting negative affects tobacco products can have on us. Purchase one less drink while at dinner each month and you have your life policy premium paid. Take it a step further and put down those cigarettes and the savings will more than pay for your policy. Be tobacco-free for at least 12 months and your policy premium is more than cut in half; so consider this when starting the life insurance buying process.

Entertainment – One afternoon at the movies for a family of three can cost upwards of $50. Enjoying some downtime is critical to your overall health and happiness, but so is the peace of mind of knowing your family is cared for. Don’t sacrifice one for the other.

Fashion – Just one pair of designer jeans will run you over $100. There is something to be said for quality over quantity, but just make sure those jeans will last you a decade or more, if you choose fashion over financial security.

Our purpose is not to tell you you must give up all your favorite things; just the opposite, actually. The cost of life insurance, particularly a term life insurance policy, is minimal compared to your overall budget. This is just an example of a few areas where Americans could better allocate their money. When you’re ready to secure the future of your family, contact our team of experienced agents to discuss your life insurance needs and options available to you.