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Why Getting Life Insurance Is a Smart New Year’s Resolution

By Emily Smith Nov 24, 2021

There’s no question that setting goals at the start of a new year is a time-honored ritual. A new year, full of possibility, brings an energizing fresh start. 

For some, new year’s resolutions are about physical health, personal development or professional advancement. But it’s also a natural time to set financial goals. In 2021, for example, more than half of all Americans and nearly two-thirds of millennials made a resolution related to their finances.

Dawn Santoriello, a Certified Financial Planner and founder of DS Financial Strategies, says as a new year approaches, many of her clients are reflecting on the past 12 months, looking ahead and feeling inspired to make their family’s future more secure. 

As you take stock of your family’s accomplishments and goals for the future, one financial goal that you might consider is getting life insurance. 

“The pandemic has taught us how precious life can be and no one is promised tomorrow,” Santoriello says. “If you have a family, life insurance is a necessity. Most households require two incomes today, and a death in the family is emotionally devasting. But it doesn't have to be financially devastating as well. Life insurance is an inexpensive way to make sure your family is provided for when they need it the most.” 

How Does Life Insurance Work?

Life insurance comes in two types: term or whole life insurance policies. Term life insurance provides coverage for a set length of time, such as 10, 20 or 30 years. If you were to pass away during that covered term, your beneficiaries receive a death benefit, or a predetermined amount of money. They can use this money for anything from your final expenses to daily living costs or funding a college education. When the term ends, so does the coverage. 

A more expensive option is whole life insurance, also called permanent life insurance, which lasts for the policyholder’s entire lifespan. Whole life insurance also has a “cash value component,” which grows in value over time, and which you can withdraw or borrow from while you’re still alive. Term life insurance, however, costs significantly less and is much less complicated than whole term life insurance, making it far more affordable.

Colin Exelby, a Certified Financial Planner and president and founder of Celestial Wealth Management, says life insurance is a critical part of managing risk and preparing for the unexpected. “For most people, especially younger people, the most valuable asset they have is their ability to earn money,” he says. 

If your working years are cut short, your family could face financial strain that jeopardizes their stability, goals and dreams for the future. Fortunately, Exelby says, you can use life insurance to help fill potential gaps and keep your family on a secure path. “Managing this risk is important so as not to burden your immediate or extended family financially and impact their financial plan as well if something unforeseen were to happen.”

Why Applying for Life Insurance Should Be Your Resolution This Year

Many people put off getting life insurance because they assume it’s costly—and it’s hard to imagine squeezing one more expense into their budget. But here’s why this may just be your year:

1. It may be more affordable than you think.

There are many different types of life insurance, and some are much more accessible than you might think. A 34-year-old woman in excellent health, for example, could pay less than $18 per month for a 15-year term and $250,000 in coverage according to a term life insurance quote through Fabric.

2. It’s surprisingly quick.

Getting life insurance is one of those tasks that often slips to the bottom of a long to-do list. When you’ve got laundry piling up and deadlines to meet, applying for life insurance is easy to procrastinate. But actually filling out the application is faster and simpler than many people expect—you can apply online in about 10 minutes, and you may be approved without a medical exam

3. It’s on a lot of our minds.

If you're thinking about getting your finances in order, you’re not alone. Amid the loss, uncertainty and new challenges brought on by the COVID-19 pandemic, many parents have decided that now is the time to plan for their family’s future. 

4. You’ll probably get better rates now than later.

Another great reason to tackle life insurance: The sooner you check this off your list, the better price you’re likely to get. 

How Your Other Resolutions Could Help With Getting Life Insurance

You might be surprised to learn that other common new year’s resolutions often go hand-in-hand with getting life insurance, serving dual purposes. 

Maybe you’re committing to running a few times a week to boost your cardiovascular health, or you’re adding meditation to your daily routine to reduce stress, or you’re following a nutrition plan to get more healthy foods into your family’s diet. Any of these could help you lock down a lower monthly life insurance premium.

If you lost weight, quit smoking or your health improved in any way, you could qualify for a better rate on your insurance,” Santoriello says.  

And if your health previously scared you off from applying for life insurance, making healthy changes could open up your options. 

“If you have had certain health conditions that disqualified you from getting insurance in the past and it's been a while—five years or more—you may qualify if the situation is now under control,” Santoriello says. 

A new year is a fresh start. Whether you use this new beginning to create fun traditions with your kids, level up at work or reach a fitness milestone, the plans you make now could set your family up for a brighter future. And a financial goal like getting life insurance can help ensure it stays that way.

Fabric exists to help young families master their money. Our articles abide by strict editorial standards.

Fabric by Gerber Life exists to help young families master their money. Our articles abide by strict editorial standards.

Information provided is general and educational in nature and is not intended to be, and should not be construed as, financial, legal, or tax advice. Laws of a specific state or laws relevant to a particular situation may affect the applicability, accuracy, or completeness of this information. Federal and state laws and regulations are complex and are subject to change. We make no warranties with regard to the information or results obtained by its use, and disclaim any liability arising out of your use of, or reliance on, the information.

Fabric by Gerber Life offers a mobile experience for people on-the-go who want an easy and fast way to purchase life insurance.

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Written by

Emily Smith

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Term Life Insurance Policy Series ICC22 2205-4004 WSA and Accelerated Death Benefit Rider policy series ICC22 2205-2623 WSA (and state variations where applicable) issued by Western-Southern Life Assurance Company, Cincinnati, OH which operates in DC and all states except NY, and distributed by Gerber Life Agency, LLC using Fabric Technologies. Gerber Life Agency, LLC is an affiliate of Gerber Life Insurance Company (est. 1967). All are members of Western & Southern Financial Group (Western & Southern). Issuance of coverage for Term Life Insurance is subject to underwriting review and approval. Please see a copy of the policy for the full terms, conditions and exclusions. Product provisions, availability, definitions and benefits may vary by state. Payment of benefits under the life insurance policy is the obligation of, and is guaranteed by, the issuing company. Guarantees are based on the claims-paying ability of the issuer. Products are backed by the full financial strength of the issuing company.

All sample pricing is based on a 30-year old F in Excellent health for the coverage amount shown and a 10-year term policy, unless otherwise stated. Gerber Life Agency, LLC (GLA) is an insurance agency licensed to sell life insurance products. GLA will receive compensation from Western-Southern Life Assurance Company for such sales. The NAIC Company Code for Western-Southern Life Assurance Company is 92622.

Western-Southern Life Assurance Company's A+ Superior A.M. Best Rating: Superior ability to meet ongoing insurance obligations (second highest of 13 ratings; rating held since June 2009). Ratings are subject to change from time to time. The ratings shown here are correct as of 09/03/2022. For more information about a particular rating or rating agency, please visit the website of the relevant agency.

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