Why December is the best time to buy life insurance

‘Twas the night before New Year’s, when all through the house, not a creature was stirring, not even a mouse.

And why’s that? Because you’re heading into 2021 with “get life insurance” crossed off your to-do list, and your life has immediately become calmer and quieter.

Oh, you haven’t taken care of that yet? For those that are wondering when to buy life insurance, December is the month to do it.

Here’s why you should prioritize getting term life insurance coverage during December, which somehow is here already.

Life insurance makes a heartfelt gift

Simply put, a term life insurance policy provides financial protection for your loved ones in case something happens to you. Those loved ones, or beneficiaries in life insurance lingo, will receive a lump sum payout for the amount of coverage you purchase should you die before the end of your term. (And if you don’t die before the end of your term, good news: You’re alive!)

In other words, this is something you do for other people, and something that will benefit your family after you’re gone. In a sense, life insurance is the ultimate gift — something you give someone both now and later, even when you’re not there to give it to them. Buying life insurance now is a way of saying “I love you enough to protect you even when I’m not around.”

Also, it’s easy to wrap.

Life insurance will keep you warm at night

Well, not literally. But you will sleep more soundly knowing that your family is covered in case the worst should happen. We all have enough to worry about —  in 2020, especially — so think of a life insurance policy as giving yourself peace of mind, not to mention a measure of long-term comfort to your loved ones that they will be able to cover any final expenses should anything happen to you. No mere blanket can do that.

Which reminds us: Who needs life insurance, anyway? Simply put, anyone who has other people who depend on them for their financial well-being. For example, if you have kids who would be impacted by the loss of your salary, you probably want life insurance to serve as an income replacement. If you have a partner who depends on you for income (or for managing the house), you probably want life insurance. If you take care of aging parents, or if you have outstanding debts that would become someone else’s responsibility, you probably want life insurance.

Everybody has value. But if part of the value you bring to your family can be measured in dollars, you probably want life insurance.

Life insurance is a great use of that travel budget

So you’re not visiting family this year. Or taking that dream cruise or family vacation to Hawaii. Turn lemons into life insurance lemonade by repurposing those savings for your life insurance premiums.

Consider this: The price of one round-trip ticket from Chicago to Honolulu over the holidays is around $600 right now. (Keep in mind, prices are lower due to the pandemic.) For a family of four, that adds up to $2,400, before considering food, accommodations and other expenses. Well, guess what? Since you’re probably tabling that trip for now, you can put that $2,400 toward paying for a new life insurance policy. And that goes a long way. For a 35-year-old man in excellent health, a 30-year term life insurance policy for $1 million from Haven Life will cost about $77 / month. That means your $2,400 will pay for two-and-a-half years of that policy. For a half-million dollar policy, which would cost that same man roughly $41/month, that $2,400 will pay for nearly five years of that term.

Point is, if you’re fortunate enough to be a little extra liquid this year, now is a great time to get coverage.

2020’s been hard. Life insurance will make 2021 (and beyond) easier

At some point, we will move on from this trying year. And that’s putting it mildly. There was a once-in-a-lifetime pandemic. (We hope!) Unimaginable economic hardship. A divisive election. And a series of tragedies that made it even more clear how far we have to go in terms of racial justice. Suffice it to say, it hasn’t been easy.

Thinking about the future is often a great way to pull through difficult times. And one thing you can do today to help make tomorrow a little brighter is take a few minutes to apply for a term life insurance policy that will cover your loved ones in case the worst should happen.

It’s the holidays. You might have a little extra time

We know, we know — typically, you spend this season running around, searching for gifts for everyone on your list, going to your holiday party and your partner’s holiday party and your friends’ holiday parties and … whew, it’s exhausting just thinking about it. But this year, you’ll be shopping online. You’ll be attending those parties virtually. And, well, you’ll be working from home, which means no one has to know you’re finding new clothes for your kiddos during your Zoom meeting. Point is, you might have a little time to spare, and it only takes a few minutes to apply for decades of coverage. Pretty great ROTI (return on time investment), if you ask us.

Buy life insurance now. Scratch something off your 2021 to-do list

The end of the year is a great time to take stock and set goals for the 12 months ahead. Maybe you want to build up an emergency fund. Maybe it’s time to buy your first house. Maybe this is the year you get out of debt. Whatever your plan, term life insurance coverage is an important part of it. For a small investment in your monthly premium (see table above), you can provide coverage that your loved ones can use for a whole host of things.

What kind of things? Well, anything they want, technically. But typically, families will use that payout to cover funeral and burial expenses; help pay off a mortgage; invest in a child’s education (including college); food and other monthly cost-of-living expenses. Essentially, all the things you would pay for if you were still around.

Life insurance is the perfect stocking stuffer. And it’s guaranteed to fit

Look, we’ve already explained why it’s a perfect gift. But it’s also a superior gift — you don’t have to worry about getting the wrong size, or figure out how to wrap it, or how to sneak it into the house and into a stocking without anyone noticing. All you need to do is say “Honey, I have life insurance coverage now, because you and our family deserve it. Happy holidays!” (And maybe put a bow around a printout of the policy.)

Pro tip: It might help if you also get them something else, despite the possible inconveniences we just mentioned. You know, just in case.

But whatever you do, you’re ultimately showing your loved ones you care, that you’re thoughtful, and that nothing — not even the unforeseen — will stop you from taking care of them.