What’s more important? Netflix, Starbucks, or your Kids?

What’s more important? Netflix, Starbucks, or your Kids?

It can be a little ironic how many people emphasize that their family\’s safety and financial well-being is their biggest priority and then they proceed to spend money on short-term enjoyable expenses instead of buying life insurance. For approximately $29 per month, a healthy 40-year-old male ($24 a month for females) can obtain a $500,000 death benefit guaranteed for 20 years.

Let it be clear that I don\’t mean to bash the small pleasures we all succumb to. Instead, my intention is to point out how affordable life insurance really is. I can easily point out 5 other monthly expenses that are approximately the same cost. The goal of this blog is to demonstrate how affordable it is to have peace of mind in knowing that if your family loses you, they won\’t have a financial burden along with their emotional distress. (Make sure you read the final paragraph to learn how basically get paid to have the protection you need.)

Now that my intention is clear, let’s go over five monthly expenses that have a similar cost:”

Streaming Platforms
Netflix costs $13.99. Other streaming platforms such as Amazon Prime and Hulu and other traditional movie channels have almost the exact same costs. If the low cost of life insurance is a deterrent, and you pay for two or more streaming platforms monthly, you could consider dropping one of them and opting for life insurance instead.

Car Wash
The average car wash usually costs anywhere between $10 – $25 and that\’s only for an exterior wash. Not to mention that car washes can result in the use of a lot of potable water which nowadays has become more of a limited precious resource. So if you\’re one of those people that take their car for a wash weekly or a couple of times a month, you may consider cutting back.

At spas or salons (mid-range), manicures cost $20-$25 (standard) and $30-$45 (deluxe); pedicures cost $35-$40 (standard) or $45-$60 (deluxe). Acrylic nails range $35-$45 (standard) or $45-$50 (pink and white). Ladies, I know you are thinking, “where do I get them so cheap?”. We are going with national averages here. If you\’re the type of person to have multiple manicures/pedicures a month, you might want to consider cutting back on just 1 session a month to cover your family’s financial security.

Take Out
According to a study the average American spends $100 a month on delivery food (Hailu, 2017). It\’s understandable if you order take out because you don\’t have time to cook a meal, however, a quick exploration of tasty easy recipes on the social media page Provecho can provide you with great ideas and help you save money and re-direct your savings to a plan to protect your family. Even cutting down your monthly consumption by 1/3 is enough to purchase a life insurance policy like the one mentioned above.

Now I\’m not suggesting that coffee is a problem, however, if you\’re a consistent consumer of Starbucks, this coffee franchise can be eating away at your wallet. The tall drinks can end up costing you $101.75 monthly and the venti-sized drinks $131.46. These numbers are based on 1 daily cup. If you don\’t drink daily and only every other day, the cost can still be double in relation to a life insurance policy.

Now I\’m no psychic, but chances are, you indulge in at least one of the monthly costs mentioned above. We all enjoy these small pleasures, and some of you many more. You know who you are. However, it\’s a matter of setting priorities and establishing what\’s most important. Small pleasures vs. your family\’s financial security.

One last detail: For the last 5 years, many of my clients have accepted a term life insurance policy that rewards folks for their healthy habits. Some of the benefits this policy offers are $50/month of free fruits and vegetables at over 300 Grocery stores, free Amazon Prime, 50% off any hotel on Hotels.com, and a $25 Apple watch or free Fitbit. So, if you have been putting off protecting your family, you can now enjoy the simple pleasures in life and more, and the savings on healthy foods alone could pay for your policy.

As always call me if you have any questions or would like to review your insurance, tax, retirement, or estate plans. 310-417-9040.

– Jeff Gurman
The information above is not to be construed as tax, legal, or investment advice. That advice can only be provided by independent tax, legal, or investment advisors. CA Insurance License #0815028.

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