Common Term Insurance Questions Answered: Why You (Probably) Need It

Is Term Insurance a Waste of Money?

One of the most common debates on social media is whether term insurance is a 'waste' because most people outlive their policies. While it's true that most policies never pay out, that's actually the goal! You're paying for the peace of mind that your loved ones are protected during your most vulnerable years.

Scenario 1: The 'DIME' Couple

John and Sarah have two kids and a $400k mortgage. They wonder why term is better than whole life. Using the DIME Method, we calculated they need $1.2M in coverage. A term policy costs them $45/month, while a whole life policy would be over $600/month. By choosing term, they can invest the difference and build real wealth.

Scenario 2: The 'Debt-Heavy' Grad

Alex is single but has $60k in private student loans co-signed by her parents. If something happened to Alex, her parents would be on the hook. A small, 10-year term policy costs her less than a cup of coffee per week but ensures her parents won't face financial ruin.

Scenario 3: The 'Self-Insured' Executive

Mark has $2M in assets. He thinks he's self-insured. However, after calculating his estate taxes and the cost of maintaining his family's lifestyle for 20 years, he realized his $2M would be gone in less than 7 years. Term insurance provides the 'gap' coverage he needs while his assets continue to grow.

Ready to see your number? Check out our How-To Guide or use the Term Insurance Calculator directly.