Why Life Insurance is an Important Protection Plan for Our Family

This article was sponsored by SelectQuote and we get paid if you sign up for insurance through our links, but all thoughts and opinions are my own.

In my single years, after I got my first job, I quickly learned that I needed a monthly budget to manage my expenses, otherwise, I wasn’t going to make any progress and likely miss a rent payment.  In fact, my dad instilled the importance of setting aside some money every month in a savings account to plan for the unknown.

What I didn’t realize until a few years later, was that, overall, I needed to mature financially.

Financial Maturity

As a single guy, I wasn’t thinking big picture about major financial decisions and what life would look like 10 years or more down the road.  I wasn’t thinking about responsibilities you one day have as life gets bigger.

  • Having a family one day and the cost of raising children.
  • Combining finances with the future love of my life and how we would manage our money together.
  • Putting food on the table for my family.
  • Getting out of and staying out of debt.
  • Saving adequately for retirement.
  • Getting a life insurance policy and protection for our family.

How could I?  I was only a young adult and had no understanding of this level of responsibility.  And I didn’t have the opportunity to take a personal finance class in school!

Suddenly, everything changed.  I got married.

Getting married is a wonderful event in life.  It made me grow and mature in many ways and certainly, with my finances. Marriage made me think about the importance of my financial decisions and planning for the future.

Why Life Insurance is Important Protection Plan for Our Family

The Importance of Life Insurance

Marriage made me think about life insurance too.  One of the books I learned a lot from years ago was written by David Bach, “Smart Couples Finish Rich.”  It covered a wide variety of topics, including building your “retirement basket”, “security basket” and “dream basket.”  My single life was focused on my dream basket, but “marriage me” now needed to be focused on retirement and security baskets.

Life insurance is central to a good security basket and it became really important to me because of the love for my wife. We had established a new life together. She was finally able to stop working when we had our first child. The last thing we wanted to do was talk about the unthinkable, but you have to be wise and plan for the future. You have to make sure everything is in order for your loved ones.

Could my wife go on living with enough financial support to take care of herself and our first child, or would she be stuck with debt, lack of funds to pay for funeral costs and looking for a job all in a time of mourning?

David Bach says this about life insurance:

Most people hate to talk about life insurance, but if you’ve got anyone in your life who counts on you for financial support, then you need to have some sort of a protection plan in place in case something happens to you. And that’s all life insurance is – a protection plan.

A Protection Plan

So, we got a protection plan! I made sure that my wife and daughter were protected and today our coverage is enough to replace my salary for many years and support my wife and now two children.

There are different types of life insurance and I won’t bore you with all the details.  The purpose of this post is to prompt you to take action.

There are simply two types of life insurance (Permanent and Term) and the majority of people need a term life insurance policy.  Term insurance provides you with set protection for set amount of time for a set price.  It’s simple, the least expensive and the easiest to understand.

SelectQuote Term Life Insurance

SelectQuote Life InsuranceAs an example, consider SelectQuote.  They’ve been in business for over 30 years and have expertise in finding the lowest cost life insurance option.  While they specialize in life, they also provide auto, home and senior care.

Here’s how to save time and money with SelectQuote:

  • They shop the companies they represent to find you the best quote based on your situation.
  • They’ve been around a long time so they know the business.
  • You get a personal agent who guides you through the process.
  • The risk is low as you can return your policy within 30 days for a full refund of premiums paid.

You can also relax in that no agent will ever come to your home with the exception of a mini medical exam in your home or office.

Click here to get started and receive a quote.

Taking financial responsibility feels good. I feel like I’ve taken an important and responsible step to protecting my family. They won’t have to worry about paying for my funeral and they can have peace of mind knowing they are supported for years if I were to pass away.

Life insurance for us is a critical financial tool in our tool belt.  Term policies are so cheap that most people can find room in their budgets and this makes getting life insurance an absolute no-brainer.  I highly encourage you to take action today!

This article was sponsored by SelectQuote and we get paid if you sign up for insurance through our links, but all thoughts and opinions are my own.

Last Edited: October 26, 2016 @ 3:37 pmThe content of ptmoney.com is for general information purposes only and does not constitute professional advice. Visitors to ptmoney.com should not act upon the content or information without first seeking appropriate professional advice. In accordance with the latest FTC guidelines, we declare that we have a financial relationship with every company mentioned on this site.
About Jason Price

Jason is a husband, dad, entrepreneur and financial ministry leader passionate about serving people in the area of personal money management. He's been doing so for over 10 years in ministry, coaching, speaking and blogging. Learn more about Jason here, follow him on Twitter or read more of his articles here at PT Money.

Comments

  1. When you care about people you want to see that they are taken care of. This article effectively conveys the importance that family and relationships have in determining how to spend your savings. I think Millennials should consider life insurance as an early investment in the long-term wellbeing of those that they love. I appreciate this heartfelt and sensible post, Jason.