Today I am so excited to announce the start of our new series: FINANCIAL FRIDAY.
We have partnered with the experts over at New York Life – South Texas, to provide Coastal Bend families with information and resources on making smart and responsible financial decisions.
I can tell you, from experience, that THIS. MATTERS.
In 2016, the unexpected struck and my husband and I were involved in a car accident that killed him instantly. I went from being a happily married mom of two, with our entire lives ahead of us, to a widow without any idea of how I would make it work.
Thankfully, my first husband and I made the decision to purchase small life insurance policies when I became pregnant with our first son in 2005. It cost us less than $30/month.
There were many months – in the early days – where I contemplated canceling the policies because $30 could buy diapers or gas or something else.
When the worst of the worst happened in 2016, I was so incredibly grateful. The life insurance policy kicked in and I was able to pay off some major bills (including my student loan) so that my teaching salary would be enough to support myself and my two growing boys.
I can assure you – life insurance IS WORTH IT. You just never know….but don’t take my word for it – here are 5 simple reasons that young families should have life insurance NOW.
When it comes to money matters, young parents who are just starting out have a lot to juggle: You may be paying off student debt and saving for a first home, all while raising kids.
The reality is, it’s also a time when young families may be the most financially vulnerable should the unexpected strike.
To ensure that you have financial protection when you need it most, purchasing a life insurance policy should be at the top of your mind.
Here are five reasons why young families need life insurance:
- You just never know. While it’s not the most pleasant thing to ponder, an emergency situation could quickly put your family’s finances under water. In fact, only 40 percent of Americans have enough savings to cover an unexpected $1,000 expense. And when you’re starting out, not having protection in case something happens to a family’s breadwinner is even scarier.1
- The earlier you opt in, the more affordable it is. Because age is one of the factors that affects the cost of your premiums, the younger you are when you purchase a policy, the less you’ll be paying each year.
- It may not be as expensive as you think. If you’re on a budget and are convinced you can’t afford life insurance, consider term life insurance. It guarantees protection for a set amount of time provided premiums are paid when due. Since it’s not designed to last a lifetime, the annual premiums are considerably lower when you are younger.
- It lets you concentrate on other goals. Once you have the peace of mind and financial protection that life insurance grants you, you may feel secure enough to fund long-term goals, like buying a home, saving for your nest egg, or going back to school.
- You can always upgrade at a later date. Don’t let the fear of making the wrong decision deter you from purchasing a policy now. The policy you purchase today isn’t intended to be set in stone. As your family’s needs change, you have the option of considering other policies.
1Annie Nova, “A $1,000 Emergency Would Push Many Americans into Debt,” CNBC, January 23, 2019.
We know it’s not easy for young families to make their life insurance needs a priority, given all their competing financial obligations. However, permanent life insurance is a vehicle for protection that is not only affordable, but can also help families accumulate cash value and can ultimately propel them toward reaching both their immediate and far-reaching goals.
Do you have questions about how you can protect your family’s future? Visit our friends at New York Life – South Texas. They can answer all of your questions and get you set up!