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November 6, 2017
Picture yourself back in 2007. If someone asked you about your monthly subscriptions, you'd probably think of print magazines, your cable bill or maybe even a DVD-by-mail service. But probably not life insurance.
A lot has changed since then. Now you can subscribe to an unlimited, on-demand lineup of movies, TV shows and music. You can have groceries or ready-to-cook meal kits delivered to your door. You can even get your razors, beauty products, wardrobes and more replenished on a regular basis.
In short, the U.S. subscription industry is in a serious growth mode. By some estimates, it's expanding far faster than the S&P 500.1
So how does this relate to life insurance?
It has to do with what you view as valuable and what you're willing to pay for that value. Essentially, what you consider a financial priority.
It's not hard to see why millions of people spend money on subscription services. Doing so satisfies a practical – and often emotional – need to have new, shiny items delivered to their doorsteps.
Here's where you can find the connection to life insurance: A 2017 study by Life Happens2 – an insurance education and research nonprofit – found that 80% of respondents rank family as their top priority.
Given that, it's startling to discover that only 55% of those people have life insurance, in part because they think it's too expensive.
And that leads to a question: If millions of consumers are willing to pay as much as $40 per month for one subscription-based service, why do so many people shy away from purchasing life insurance due to the cost?
Why people don't purchase life insurance
According to the 2017 Insurance Barometer Study by Life Happens and LIMRA, there are two main reasons.
1. They have other financial priorities (66%).
What you value heavily influences your financial priorities.
Look around your house or apartment.
Chances are the products you love and purchase most are the ones that offer a tangible – or even emotional – benefit.
Now focus that lens on your family. If you have financial obligations that they rely on you for, what would happen if you were no longer around?
The primary reason to buy life insurance is to protect your loved ones. It can help provide your family with the financial security they'll need after you're gone. It can also ease financial burdens they may experience if you died without coverage.
Here's where the link between subscription services and life insurance really comes into focus: Think of a monthly life insurance premium as something that can offer real value for the people you love.
While you certainly don't need to cut all of your expenses, trimming some that you may no longer want or need could help you prioritize.
2. They think it's too expensive (66%).
Cost is one of the biggest misconceptions. But the truth is that life insurance – especially term insurance – may not be nearly as pricey as you think.
In fact, the Life Happens and LIMRA study found that two in three adults overestimate the price of life insurance by more than three times the actual cost.
Here's an example* to consider:
Who: 40-year-old, nonsmoking female
What: 20-year term contract
Coverage amount: $250,000
Monthly premium: $20 to $35 (depending on health)
For as little as $20 month, you could experience the emotional satisfaction that comes with knowing you and your family are protected by life insurance. It comes down to considering how the things you buy truly make you feel – emotionally, financially and even spiritually.
Finding the value in life insurance
Life insurance has other options that can be affordable as well. The key is to understand what type and how much coverage you need to protect your most important priorities.
It means more than a monthly package. It can be a caring way to provide for those you love – in rain or snow; good times or bad.
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2 Insure Your Love Study 2017, Life Happens
3 Thrivent Term Life Insurance quote for female, age 40, non-tobacco user; $250,000 death benefit for 20-year level term. Monthly premium depends on insured's health. Super-Preferred: $20/month; Preferred: $25.37/month; Standard: $31.82/month. Rates as of Nov. 11, 2017.
4 The average viewer spends $32 a month for on-demand content and subscription video on demand. Source: 2015 Vimeo study, ages 18 to 54.
5 The average cost of a gym membership in 2014 was $41 a month according to industry research firm IBISWorld.
6 Consumer Reports "Best Low-Cost Cell-Phone Plans," Aug. 28, 2017.
This is a solicitation for insurance.
A Thrivent Financial representative may contact you. Life insurance has exclusions, limitations, reductions of benefits and terms under which the contract may be continued in force or discontinued. For costs and complete details of coverage, contact your Thrivent Financial representative.
THRIVENT FINANCIAL IS THE MARKETING NAME FOR THRIVENT FINANCIAL FOR LUTHERANS.