#1: Understand your earnings power and why it matters when considering buying life insurance
Your earnings power is made up of two very simple elements.
- You at work – This is the income you earn at work every day.
- Your money at work – This is the income you earn through your various investments or retirement plans.
If you add these two together, it’s the basis of your earnings power, which is the foundation of the lifestyle you and your family are accustomed to living today.
Whether you live a life of luxury or poverty, necessity or comfort, your earnings power maintains your family’s lifestyle, and only YOU can honestly answer what type of lifestyle your earnings power provides you and your family today.
Do you currently have a lifestyle of luxury, poverty, necessity, or comfort?
Now, take a moment and think about this scenario, and give yourself a very honest answer.
What if we took you at work out of the equation?
Would “your money at work” sustain your current lifestyle (life of luxury, poverty, comfort, or necessity) your family is accustomed to living?
For most people, they answer NO to that question. It’s as simple as that.
#2: Understanding the Three scenarios that threaten your earnings power that can be solved by life insurance.
- You could die too soon…(life insurance is often the solution)If you were to unexpectedly pass, how long would your current savings last? How long would you like it to last?
- You could live too long…(annuities are often the solution)
- You could get diagnosed with a critical illness or become disabled…(critical illness coverage, long-term care, or disability are often solutions here)
If we just consider what if you die too soon, let’s assume you are an average income earner according to the U.S. Census Bureau, you make $70,784 per year. If you gained no interest on your money after you passed away and you wanted to replace your income 10 years, you would need just over $700,000 in death benefit. Using this simple calculation, a 35 yr old in great health, living in Colorado can buy 10 year term insurance between $17 – $29 per month. If you wondered if that’s affordable, annually this cost is 0.28% – 0.48% of your annual income! Far less than 1% of your annual income.
#3: Life insurance is not one-size-fits-all
This is why at the beginning of this article we said, “Do Not Buy Life Insurance Until You Understand This…”
Understanding the 3 scenarios above and how they impact your earnings power today should be the driving reason you even consider life insurance as a possible solution.
You may find through this quick exercise that you don’t actually need life insurance at all and a strong disability or long-term care plan is the more fiscally responsible choice to make, and the missing link you’ve been needing to properly protect your earnings power.
You may find it interesting that in most states, our insurance policy helps you cover each of those three scenarios. We provide a death benefit, a disability income rider, and a critical illness rider. While these riders may not fully cover your need, they are an easy and affordable way to start covering the threats to your earnings power.
We feel it’s our job to equip you with the information that allows you to make an educated decision on the insurance products that make the most sense for your situation. We can’t do that unless we properly help you understand what you’re actually protecting.
Conclusion: Should you buy life insurance?
That’s a question for you to answer after thinking through your earnings power and what would happen if it were to be compromised.
Most people simply cannot sustain their current lifestyle if “you at work” is taken out of the equation (due to death, disability, or illness). If that accurately describes you, we would strongly encourage you to click “Get a Quote” anywhere on this page. You can quote, customize, and buy life insurance in minutes, without needing to speak with an agent.
How much does it cost?
In this chart below, we are looking at the cost of 10 year term insurance for a Male and Female living in Colorado who are in great health and non-tobacco users.
How Do I Buy Life Insurance?
Thankfully we have made buying life insurance fast and easy, the entire process takes less than 10 minutes for most. Here are 5 easy steps to buy life insurance through Quote Bot:
Step 1: Start a quote. This process takes less than a minute because we need very little information to instantly show you a quote that you can customize. You just need to know your name, date of birth, state, general health, and tobacco status. We always send you a link to this quote for you to refer back to.
Step 2: Get pre-qualified FAST. On your quote, we provide a link to continue to the application. This brings your first through a short pre-qualification so you know if you’re expected to qualify. This process can be as fast as two minutes to complete.
Step 3: Complete application in Minutes. Once you see the pre-qualification results you can complete the application. This process takes between 5-10 minutes depending on your health history and customizations chosen. You will receive another instant verification of your expected eligibility before you sign your application. You will also put your payment information in on this step, but you are not charged until the insurance company has approved your signed application.
Step 4: Sign & Instant Dedcision. After you received your approval verification from the application, you will be able to instantly electronically sign your application. Once you finish your signatures, we bring you back to the final decision page and the Insurance Company will let you know within 90 seconds of your approval status. The insurance company will send your policy for electronic delivery after you’ve been approved!
THAT’s IT! It really is that simple and for most, this can be completed from beginning to end in 10 minutes or less.