By treating our budgets like crash diets, we are only bound to fail. Why is that? Simply put, our brains are hardwired for addiction. It’s more appealing to eat a brownie than do 100 burpees. And it seems easier to swipe plastic than give real thought to our long-term financial goals. Families across the US worry that their nest egg won’t be enough for emergencies and retirement. However, there are some simple steps you can take today to set the foundation for a prosperous new year.
While 87% of Americans have car insurance, only 57% have insured their lives. That should give you pause. Whether you’re a single breadwinner, a stay-at-home parent or a part of a dual household, term life insurance can provide peace of mind and security, no matter what happens.
Term life insurance is up to 30 times cheaper than a permanent plan. And while many agents tout the potential returns of purchasing whole life insurance, it's average annual rate of return ranges between 3 and 5 percent, underperforming the S&P 500 by 5-7 points.
Unlike the stock market, life insurance is a sure bet in your family's well being. Locking in a low rate today means that your family won’t have to pony up their savings. This is especially important if your family falls in the lower to middle-income bracket, and wants to begin building wealth for the next generation.
How resilient will your family be with the sudden loss if you were to pass away? Are you prepared to address the cost of treatments and medication as you age? Opting into a low-cost term life plan as well as long term care insurance can minimize these challenges.
Remember that a balanced lifestyle equals better rates and lower medical expenses down the road. Identify your risky behaviors and consult with a specialist to minimize and eliminate those triggers. Rather than a one-off diet, consider implementing a strategy that considers your mental and physical goals.
Tools like Maven Clinic, Doctor On Demand, and LiveHealth, can help you find a practitioner that suits your needs. If you can’t afford a personal trainer, take advantage of free sessions at your gym, drop-in classes and online apps such as Classpass and ZenRez.
As you develop these balanced habits, you’ll be in a better place to plan for the different stages your family may face. Are you raising children, saving for grad school, or gearing up for long-term caregiving? Life insurance will ensure that these goals can be sustained - even if you're not there for your family. And the best part is that the healthier you are, the lower your rate is and the better your coverage. That’s an equation that makes more sense than the benefits of going keto or gluten-free.
Applying for life insurance may seem intimidating, but it’s one of the best decisions you can make to achieve those new year’s goals. You’re taking away not only the burden of financial stress—you’ll also have peace of mind knowing your family will be protected in case anything happens to you.
Consider the increased cost of education. Term life ensures that your hard-earned thousands can get your child a diploma. Are you a first-time homebuyer? Term life ensures that your family won’t be forced to sell their home or lose it.
Term life is also a great way to boost retirement security. Empty nesters may be surprised to learn that they’ll need around one million for the necessities alone. From assisted living to long-term and palliative care, term life will keep you at the driver’s seat of your retirement. While getting life insurance may not be on your immediate list of things to do, it can be one of the easiest steps you can take to get your goals in order for the new year.