Bringing Life Insurance Into the 21st Century

By Alison Norris, CFP, SoFi

Starting today, SoFi has teamed up with Ladder to bring you simple and affordable term life insurance. Within five minutes, you can receive an online quote for coverage ranging from $100,000 to $8 million and ensure your family’s security instantly.

But you may be wondering, is life insurance for you?

You are valuable. But you are neither immortal nor indestructible. Life insurance is a financial hedge against the scary but real risk of dying unexpectedly. It helps to replace your income, cover basic living expenses, pay off your debts, and provide for your children.

That makes sense, but when is it time to take out a policy?

Life insurance is really for the benefit of your loved ones. The need is often amplified when you start a family or purchase a home with a partner.

These life events are major milestones, sizeable financial commitments that would put pressure on your family members should something happen to you. It’s certainly not pleasant to think about your mortality, but it is crucial to protect the ones you love as life unfolds.

And if you think life insurance may be a “nice to have” that you just can’t afford right now, you’re not alone. According to the 2018 Insurance Barometer study, 44% of millennials overestimate the cost of life insurance by five times the actual amount.

We’re here to dispel that misperception.

Term life insurance provides coverage at a fixed price for a specified period of time. The beauty of a term life policy is the clear value exchange. You pay premiums and you get transparent coverage. There are other types of life insurance, but they can cost 3-10x for the same death benefit.

SoFi members are dynamic. Your lives and needs will change over time. Ladder’s policies through SoFi are structured just for you. They grant the ultimate flexibility: the ability to increase or decrease coverage as your insurable needs evolve. Life insurance can cost as little as $15 per month, and with easy to modify coverage up to $8MM, there’s a policy that fits most the needs of most families.

Maybe you’re thinking, “Term life insurance is for when I have a higher net worth or more assets to protect”. But it’s actually the opposite – having more assets means those left behind are better equipped to continue to pay for any financial obligations like a mortgage or a child’s education. From that same study, from those surveyed, more than a third (35%) of households would feel the financial impact within merely one month, if the primary wage earner died.

Akin to emergency fund savings, term life insurance safeguards your financial stability. It affords the protection you never hope to have to use, there when you need it most to ensure your family is protected from a financial burden, on top of all of the other changes and challenges they would face in your absence.

Think you can’t afford life insurance? The truth is, if you have loved ones who depend on you, you often can’t afford not to have it.

* Coverage amounts range from $100k to $8 million. Instant coverage is available to applicants who meet certain risk and eligibility requirements. A medical test may be required for applicants that do not meet these eligibility criteria.