This is a collaborative post with Jenny Life Insurance and BraVoMark.
So far, we’ve talked about protecting your family and wealth as well as how Jenny Life is changing the way busy moms get life insurance coverage. Now let’s switch gears a bit and discuss how a small monthly fee (life insurance premium) can save your family financial stress when you are gone.
Life insurance offers many benefits including helping your loved ones cover funeral costs, replacing your income when you die as well as paying off any leftover debt that you may have. On average, Americans die with $62,000 of debt and contrary to what you might think, when you die, your debt doesn’t disappear. It gets transferred to your estate.
What is an estate?
An estate consists of all the things you own including real estate property, cars, investments, jewelry and more. It’s also important to note that an estate includes everything you owe.
In a nutshell, your estate is your net worth. Your estate takes care of your mortgage and other debts first. Whatever is leftover gets passed along to your beneficiaries (children, spouse etc).
One of the advantages of having life insurance coverage is that your policy is a “protected asset” meaning that creditors cannot access these funds.
Life insurance policies bypass the estate and go directly to your beneficiaries.
Life Insurance Coverage Cost Benefits
Roughly 80% of people do not have life insurance because they think that it is too expensive. However, this couldn’t be further from the truth. It’s actually more expensive to not have insurance coverage.
Funerals alone cost $7,000 to $10,000. Not to mention that parents on average pay $15,895 for full-time infant care – yet another reason why families should consider life insurance.
Middle-income families spend over $242,000 to raise a child to 18, not including the rising cost of a college education.
While most people think that premiums cost $400 to $1,000 a year, in actuality it generally costs $160 to insure a healthy 30-year-old. That is only $14 a month.
With insurance policies as low as $5 a month, Jenny Life is an insurance agency that provides quality life insurance at an affordable price. Built with moms in mind, you can get coverage within minutes by using the app. No medical exams or office visits. All policies are also backed by an A-rated insurance carrier.
Still not sure if life insurance is for you?
Jenny Life now has a blog that curates some of the most important things you need to know about life insurance. Recent blog posts include understanding the need for a will and getting life insurance while pregnant.
Danielle is a travel finance strategist, writer, speaker and podcaster. She paid off $63,000 of student loan debt in 4 years, bought a house at 27 and has traveled to 25 countries. She refuses to let her financial responsibilities hold her back from living life on her own terms.