money management

Do You Consider Life Insurance an Asset or an Expense?

life insuranceA recent State Farm study found that half of Americans (50 percent) say life insurance is an asset while one-third (33 percent) say it is an expense.

While I completely agree with life insurance being an asset I’m pretty shocked that one third of those polled considered life insurance an expense.

Here are four reasons I believe life insurance is an asset that everyone should have.

Life Insurance Rounds Out a Financial Plan

I’m a firm believer that the right types of insurance round out a financial plan. For instance, you can pay off your debt, build an emergency fund, and start investing but what happens when a major emergency hits? The normal answer is that you’re back in debt or have depleted your savings trying to cover the cost.

If something happened to you or your spouse what kind of financial repercussions would there be?

For most Americans who are still paying off a mortgage and living on two incomes the answer isn’t good.

Once you get all of your ducks in a row, financially speaking, life insurance should be considered the protection layer of your financial plan.

If you need some more proof you can read all the amazing stories on Good Neighbors to see just how important having the right types of insurance is.

Life Insurance Allows You to Protect Your Family’s Future

If you have kids then I know you can understand the feeling of wanting to protect their future. As a parent all you want is the best for your children.

You want them to grow up as happy, healthy, responsible adults but you also want them to have every opportunity possible.

If you’re worried that your kids won’t be able to attend college if you’re not around then life insurance can bring you peace of mind.

You can choose what coverage amount you need and rest assured that you’ll still be taking care of your kids – even when you’re no longer here.

Life Insurance Can Cover These Types of Expenses Too

I don’t want to give off the impression that life insurance is only for couples who have children because it’s not.

Life insurance can be used to cover the cost of a funeral and can protect any co-signers you have on your debt.

If you don’t have a spouse and children to protect (yet) but want to be able to cover the cost of funeral services or cover the amount of debt you have then you probably don’t need a lot of coverage.

Find out how much you do need in these cases and get a quote. As long as you’re in good health I think you’ll be surprised at just how affordable life insurance can be.

Life Insurance Brings Peace of Mind

There’s something peaceful in knowing that even if something happens to you it’s not going to cause financial ruin to those around you.

It only takes a couple seconds to pick up the phone and call your agent but that one phone call could bring you the peace of mind you need.

Do you have life insurance?

Disclosure: This blog post was written as part of a sponsored program for State Farm to raise awareness about the importance of life insurance. All views expressed are entirely my own, and were not influenced or directed by State Farm. You can learn more about this blogger program and life insurance at,, and by following #StartLiving on Twitter.

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