While Greg and I haven’t done everything right, we have made some decent decisions in our lives. We bought some cheap rental properties in our 20’s, for example. And now that one of those rental properties is paid off, we have a decent chunk of somewhat-passive income rolling in every month.
And even though we overspent in our 20’s, we did manage to start saving for retirement. On top of that, we each bought a $250,000 term life insurance policy when we were just 25-years-old because we knew life insurance is most affordable when you’re young and healthy.
When we were 25, that was more than enough coverage for our family of two. After all, we didn’t even have kids. And since I only made around $30,000 per year at the time, that amount of coverage replaced my income easily.
Of course, a lot of things have changed over the years. Not only do we now have two children, but we have three houses – our primary home and two rentals. And instead of making around $30,000 per year, we earn well over six figures with our blog, my freelancing course, and our other online business ventures.
With changes in our income, we’ve recently had to reassess our financial situation and reconsider our insurance needs. Although we’ve added coverage before, we decided we needed more life insurance on me this year since I earned the bulk of our income in 2016.
Why We Decided to Buy More Life Insurance
You might be wondering why we bothered buying more life insurance coverage considering our healthy financial situation. We’re debt-free outside of our mortgage, after all, which means my husband would only need to pay for housing, utilities, and basic living expenses if I were to die. The fact that one of our rental properties is now paid in full also means we’re pulling in around $1,000 per month in passive income – money he could live off of if I died or couldn’t work.
The thing is, I wouldn’t want my family to struggle if something were to happen to me. Even if my husband could eek out a living with our blog, I wouldn’t want him worrying about money at all if I were gone.
And, what about the future? My kids are only five and seven now, but what about college? What about their weddings? What about family vacations? What about enjoying life?
With the amount of coverage we had before, I know Greg would have to make some tough decisions in terms of how he spent his money over the next decade or longer. But if we bought more life insurance, on the other hand, I could rest easy knowing money would be far less of an issue. That’s how we determined we needed at least $1 million in coverage for me.
Shopping Around for Life Insurance
My husband and I have most of our insurance policies through a large, well-known insurer so we started the process there. After talking it through, we decided we wanted to buy an additional $750,000 in term coverage on my life.
If we were to buy our policy through that insurer, we found a twenty-year, $750,000 term life insurance policy would cost around $58 per month. Since I’m 36 years old, I figured that didn’t sound half bad.
Of course, we never buy anything without shopping around. And after some basic research and planning, I decided to apply for a few policies online first. This search led me to Haven Life, where I applied for a similar 20-year, $750,000 Haven Term policy for a much lower premium amount.
Getting Instant Term Life Insurance for Less Than $30 Per Month
The best part about shopping for life insurance on Haven Life is that the entire process is easy. Simply go to their website, get a term life insurance quote and compare pricing, answer questions about your health and your family health history, and you’ll get an answer right away on your coverage eligibility. In my case, my excellent health history qualified me for InstantTerm – a process by which Haven Life is able to approve you for a policy immediately, even without the need for a medical exam to finalize coverage.
The kicker? The $750,000, twenty-year term policy that was $58 per month with the other insurer cost only $27.33 per month with Haven Life. That’s almost half the cost! And since I didn’t have to take a medical exam, I accepted the policy and paid my premiums that day.
Remember, I started the morning with no extra coverage and ended the day with a $750,000 term life insurance policy good for 20 years. It doesn’t get any better – or any easier – than that.
We all know that buying life insurance is important if you have a family. Unfortunately, this isn’t an area of our lives where we can just “set it and forget it.” As our families grow and our incomes change, we have to buy more coverage to protect our families in the event of our death. The conversations that lead to buying more life insurance may be painful, but they’re important nonetheless.
Nobody wants to think they’ll die, yet we all know it happens all the time. In the blink of an eye, your life can change or even end before you know what happened. That’s why I always say that life insurance is one of the most loving purchases you can make. While you hope you’ll never need it, your family will be so grateful if you do.
Have you bought more life insurance lately? Did it cost more or less than you thought?
This post is sponsored by Haven Life, but opinions expressed are my own.
Haven Term is a Term Life Insurance Policy (DTC, ICC14DTC) issued by Massachusetts Mutual Life Insurance Company (MassMutual), Springfield, MA 01111 and offered exclusively through Haven Life Insurance Agency, LLC