Is life insurance really worth it? How can it be a good financial investment if you’re not around to see it?

The debate over whether life insurance is a good investment is as old as time and the quick and dirty answer is one of these: “Yes, but…” 

It can make sense for a lot of people, but it’s always worth reaffirming as you navigate different life stages and financial milestones.

You can tell if life insurance is right for you by seeing how it overlaps with your financial plan. Whether you’re planning on tying the knot, feeling the sand between your toes, or starting a family of your own, building financial wellness through a holistic lens can empower you to become more financially secure – especially with life insurance woven into your planning.

First, how do we define holistic financial planning?

Financial planning goes way beyond a balance sheet or investment portfolio. Rather than just looking at numbers, a holistic approach to financial planning takes into account all the different aspects of life that might impact your personal and financial wellness. Why? Because life and money are often interconnected.

Here’s what holistic financial planning isn’t

• A singular focus on investments
• Prioritizing long-term goals over short-term goals
• Rash tax minimization strategies
• Decision-making that only serves your personal financial gain

Instead, a holistic approach considers unique lifestyle choices and preferences, personal values, and distinct goals as you progress in life. Where you are today may not be where you want to be in the future, and holistic financial planning allows for variability in your life. It offers flexibility when your environment or circumstances evolve, even unexpectedly.

For example, most people accept that there will come a day when they stop working. Retirement planning can help you envision the future of your finances before you enter that life stage. Having a complete picture of your finances can also empower you to complement your goals with the right financial choices today.

Where life insurance fits into your bigger picture

Suppose you’re about to embark on a major life change. Starting your own business or putting in an offer on your dream home. Settling down and starting a family or downsizing for your retirement. Whatever stage you might be in, life as you know it is going to change. And these big turning points are worth protecting because you trade in countless hours and energy towards achieving them.

Like all forms of insurance, term life insurance gives you coverage for peace of mind. That 25 year mortgage on your house? Or your kids’ college education? It can all be taken care of in the event of your death when you have life insurance. It can future-proof the life you’ve built and prevent your loved ones from scrambling to pick up the pieces if you’re no longer around.

Only with term life insurance, you’re just covered during a fixed time frame. This is helpful for those in their 20s, 30s, 40s, and even 50s because you can add the coverage you need as time goes on or if your policy ends.

As an insurtech, Walnut has a digital-first approach that makes taking your financial security into your hands easier than ever. Term life insurance plans are flexible and affordable, the younger you are, the better the rate, you just need to consider if term life insurance is a good investment for you.

Still considering? Here are the top 5 advantages of financial planning with life insurance and a savings plan:

1. Gives you peace of mind about the future
2. Protects your loved ones financially after you’re gone
3. Pays off your mortgage or debts
4. Covers the cost of your funeral expenses
5. Leaves behind an inheritance or charitable donation

I definitely need life insurance as part of my financial plan. But what’s it going to cost me? How much do I need to put aside?

How much coverage you’ll need depends on your age, gender, financial situation, and many other factors. One of the best ways to accurately estimate how much you’ll need is by using an insurance calculator.

Create a dynamic financial plan that suits every life stage you’re in

Looking at your financial wellness through a holistic lens can open up a new set of opportunities for you to be more financially secure to get both what you need and what you want, and be ready for life’s changes.

Now that you understand the importance of a holistic approach to financial planning, you can get started. It’s easier than ever to buy life insurance online. Walnut’s insurance model offers membership benefits for a holistic view of wellness. 

Holistic financial planning takes into account your decision-making beyond just your finances and considers your personal values, assesses your goals, and the kind of life you want. Get a quote from our team today.