8 daily expenses that cost more than life insurance

10 January 2020

8 daily expenses that cost more than life insurance

Having a financial plan that includes life insurance is the best way to ensure that you and your family are always taken care of financially, especially in the event that you become critically ill or disabled and can no longer earn a living, or in the event that you should pass away. If you compare the cost of life insurance with other monthly expenses, it will become apparent just how affordable life insurance is. Below is a list of 8 everyday things that you pay towards without thinking twice, that in no way offers the same value for money that life insurance does.

To put everything into perspective for you, as an example, an average life insurance policy costs around N$900.00 a month.

 

  1. Alcohol
  2. Alcohol, such as beer and wine, form part of most people’s monthly expenses. Maybe you have never really thought about how much you spend on alcohol every month, because you likely don’t buy it in bulk. Most people run out and buy alcohol as they need it for an event or when the want arises, but if you consciously kept track of what you were spending on alcohol, you will realise how quickly the cost adds up and just how much you are actually spending. If you don’t really notice the amount you spend on alcohol every month, then you should consider investing some of that disposable income in life insurance, an investment that offers a lot more value for money than alcohol ever will.

     

  3. Tobacco
  4. It should be no surprise that smoking is a costly habit. Considering that a pack of 20 cigarettes cost around N$42.00 per pack, this can add up quite quickly. Just smoking 5 boxes of cigarettes a week can set you back N$840.00 a month. Almost the same amount you could be investing in life insurance for a sound financial future and peace of mind.

     

  5. Electronics
  6. The latest electronics on the market never come cheaply. A new computer or laptop for example can cost a few thousand dollars. Most electronics nowadays become outdated quite quickly, meaning that you will have to replace them every year or two in order to stay current with the latest electronics on the market. Paying a life insurance premium every month is a lot more affordable than any new electronic device. Updating a life insurance policy also doesn’t mean that you have to start paying for it all over again, like you would for a new device, your policy will be updated with your changes and then it carries on with no disruptions.

     

  7. Cellphone contracts
  8. Most people have cellphone contracts, because it is seen as a necessity. With the growing cost of data and the growing usage rates of data, cellphone contracts are gradually getting more expensive. A cellphone contract can easily cost a few thousand dollars a month, whereas a life insurance policy is a lot more affordable. In the long-term, you will get a lot more value for money out of an insurance policy than you ever will a cellphone contract.

     

  9. Gadgets
  10. Just like the latest electronics, gadgets are always evolving so there is always something new on the market to buy in order to stay current. Most gadgets don’t come cheaply either. Take the Apple Watch for example, most Apple watches cost well over N$7 000.00. With new tech gadgets coming out all the time, an Apple watch (or any other tech watch for that matter) will become outdated very quickly, meaning that it will likely be replaced with another one not too far down the line. When you think about the cost of staying current, you will realise just how much money you can so easily spend on something that is in no way an investment. A life insurance policy on the other hand is a long-term investment that is more affordable than any new tech, and it will still offer you value for your money years down the line.

     

  11. Entertainment
  12. Entertainment costs are usually where people spend a lot of money without realising just how much is actually being spent. Going out for a few drinks with friends can quickly add up. A few drinks at a pub or restaurant can easily set you back around N$200.00 to N$300.00 for a single night. Of course, this amount is only for drinks and doesn’t include a meal.

    Buying takeaways for yourself and your family once or twice a month also adds up very quickly. A three-course meal for 2 people at a mid-range restaurant can cost almost N$500.00. For people with children, this amount can easily be a lot more. Enjoying a night out every so often can definitely make a dent in your bank account, but again, a night out doesn’t offer long-term value for your money like a life insurance policy will.

     

  13. Fashion
  14. How often do you buy yourself new clothes? Not because you need something specific, but because you saw something you really liked while walking around a mall. Again, just to put it into perspective for you, a pair of good quality jeans can cost anything from N$650.00 up. A new summer dress can also cost anything from N$450.00 up. Of course, a pair of designer shoes can cost more than double that of an article of clothing. Items of clothing are not made to last years and do not offer value for money or any form of investment that you can expect from a life insurance policy.

     

  15. Takeaway coffee
  16. A regular cappuccino, as an example, can cost anywhere between N$25.00 and N$30.00 a cup. Just 4 regular cappuccinos a week can set you back more than N$400.00 a month.

    Really paying attention to these kinds of things that you pay towards every month should make you realise just how much of your money you are spending on items that have no long-term value. Looking at it this way should make you realise the value for money that life insurance offers you.

In conclusion

Comparing your monthly expenses for things that are ‘nice-to-have’ with an average life insurance policy paints a clear picture of just how affordable life insurance really is. The 8 points discussed are just a few examples of basic monthly expenses that people don’t think twice about. None of these expenses are in any way an investment for the future like a life insurance policy is.

For more information on life insurance policies, as well as a quote, contact the Momentum Myriad Contact Centre on +264 61 2973631.