People often complain about the cost of a term life insurance policy, or getting critical illness or disability insurance. “If I don’t end up using it, isn’t that just money down the drain?”
Two huge things.
One. Having peace of mind that your family would be taken care of financially if you died unexpectedly isn’t a small thing. Knowing that you could still afford to pay your bills if you got sick or suffered an injury and were unable to work isn’t a small thing.
Even if you never have to use your insurance policy, it’s still money well spent. Less stress. Fewer worries. Your peace of mind is valuable. That’s a big part of what you’re paying for, and you get that benefit whether you are forced to use the policy or not.
And two. If you are concerned about the money going to waste, you have options. With most critical illness and disability insurance policies, there will usually be an option to get your premiums back if you never end up needing the coverage. The price will be a bit higher, but you’ll get your money back.
With term life insurance, in particular, you can explore the option of using whole life instead. Again, this option will mean paying higher premiums, but the coverage is permanent, so you know for certain that you’ll eventually get the death benefit paid out. And there are creative ways to use the cash value that builds inside the policy in the meantime to help fund your major life purchases while you’re still alive.
Either way, worrying that it will end up being a waste of money is a terrible reason to not get properly insured. You’re paying for peace of mind, regardless of what happens, and there are options available to you to either get your money back or to make it more worthwhile.