It’s that time of year again… It’s time to figure out your new year’s resolution.
The good news is, 2021 MUST be a better year than 2020, so your goals may not have to be set that high!
We are familiar with the classics, like lose weight, save money or be a good person. And unfortunately, we are all too familiar with the reoccurring theme of watching our goals diminish as the days, weeks or months of the new year go by.
But, we have more good news – we have a way that you can achieve four common resolution goals, simply by buying life insurance. That’s four ways you can make 2021 a better year than 2020. So, lets get started:
1. Get Healthier.
The idea of “getting healthy” can encompass a great deal of resolutions. You may want to lose weight, exercise more, eat healthier or stop smoking, for instance. Not only will you look and feel better by accomplishing these goals, but you will make your life insurance policy more affordable.
Your monthly insurance premiums are tied strongly to your health when you apply. During the underwriting process, a life insurance carrier will classify you based on how risky you are to insure. To do this, you’ll likely undergo a simple medical exam, similar to a physical, and traits like your cholesterol and blood pressure will be measured. Proper exercise and diet can get those numbers, and you, into a nice zone of affordable coverage.
However, issues like obesity or smoking make you appear riskier to carriers, which translates into higher premiums. If you need that extra boost of motivation to achieve any of your health-related resolutions, think about what it can do to your budget as well as your waistline.
2. Spend Less & Save More.
Financially-related resolutions are common, and you better believe that life insurance plays a role. Most often people start with something simple, like setting a budget or saving more – which is great! – but you shouldn’t stop there. It’s a good foundation for better money habits as a whole, and life insurance can be part of that foundation, too.
When you buy life insurance, you’re thinking years – decades – down the line. Buying a 30-year term policy means you’re getting a big picture view of your life and your finances, which is a great way to think about money. Think about mutual fund investments: If you checked your investments every day, you’d go crazy seeing the ups and downs of the markets. If you think about the long term, though, and know that you’ll average 8% returns over the next 20 years, a little dip today doesn’t mean anything to you. You need to think about the future when it comes to your money, and you’re doing that with life insurance.
Life insurance also forces you to think about your money in a more holistic way. The best way to calculate your life insurance need is to think about all of the expenses, debts, and financial plans you have. You need to know how much coverage will ensure that all of your financial obligations are taken care of for your family; that might mean scrutinizing your credit card debt more closely, finally looking into savings plans for college, or seriously tackling your student loans. By thinking about life insurance, you’re thinking about every aspect of your financial plan and you’ve just supercharged your financial resolution.
3. Be a Good Person.
There are lots of ways you can decide to be a better person. You can be nicer, you can donate to charity, you can be more patient with your children or you can buy life insurance.
Life insurance helps protect your family by making sure all of their financial needs – housing, college, everyday costs – are secured. There’s no “what if” when it comes to paying for a mortgage once you’re gone, no wondering how your spouse will reach retirement goals without your income to contribute. It also helps protect your family against inheriting your debt. Some debt, especially if a family member is a co-signer on it, will follow your family even if you’re not around. Student loans, credit card debt, auto loan payments – they can all be handled with a life insurance death benefit.
Looking beyond your family, did you know you can also donate your death benefit to a charity of your choice? Setting up a charity (or museum, or school, or anything else) as your beneficiary ensures that your legacy will live on for years to come.
4. Enjoy Life.
How are you going to enjoy life more in 2021? Will you be less negative? Will you pick up a new hobby? Will performing the above resolutions do the trick?
One thing you might try is reducing the stress in your life. Do you know what can help you do that? That’s right. Life insurance.
If 2020 taught us anything, it’s that no one knows what the future will hold, so there’s no point in worrying about every little thing that can go wrong. The best we can do is, as they say, plan for the worst and hope for the best. While you’re investing, saving, and building your financial safety net, wouldn’t it be nice to know that if you die before you finish investing, saving, and building your financial safety net, your family is still taken care of?
Buying life insurance takes the stress of an unknown financial future off your shoulders. That way you can focus on what really matters – making other plans for the future and spending more time in the present – instead of always worrying about “what if…”.
How to get started
New Year’s resolutions are a way to start fresh and achieve new goals. Even if we don’t reach all of them, it’s worth putting in the effort to see how we can better ourselves. Buying life insurance isn’t just a good goal for you. It’s a good goal for your family and their future, too.
So, we recommend adding it to your list this year and we can help you get started. Just give us a call and we can tackle 2021 together!