Why we bought Term Life Insurance, but not Apple Care

My general outlook on insurance: Insure ONLY what you CANNOT AFFORD TO LOSE.

During graduate school, My husband and I took a life-changing personal finance class that started our journey toward (Financial Independence). Among other things, we learned the most cost-effective approach to insurance:

“SELF-INSURE” everything you CAN afford to lose (e.g. extended warrantees on electronics, furniture, etc.). Skip overpriced warranties to build an emergency fund instead so you can replace the items that break.

BUY INSURANCE for what you CANNOT afford to lose:

You need these types of insurance:

  • Home Insurance
  • Auto insurance (because it’s about so much more than the value of your car: we’re talking about liability protection for all the collateral damage caused by car accidents)
  • Health insurance
  • Term life insurance (particularly on breadwinners because you are covering the loss of their income)
  • Long-term disability (because breadwinners are more likely to become disable than dead — more on this later)

Side note: Find out if you are OVERPAYING for Home or Auto insurance: Compare plans with Policy Genius.

If you haven’t heard of PolicyGenius, they help you compare insurance plans to find the best option for you.

We lean on my husband for a lot of things, including being the primary breadwinner for our family (aka we depend on his income to cover our living expenses). We have term life insurance to cover the period that we are dependent on his income. We bought additional term life insurance policies as our family (and its expenses) grew.

⚠️ The BIGGEST thing we cannot afford to lose: Breadwinner(s)’ INCOME

You NEED to protect it with both:

  2. TERM LIFE Insurance


For any Breadwinner(s), HAVE or get a QUOTE for:



Save Time / Money by Comparing Policies

⚠️ Why Long-Term Disability Insurance is CRITICAL!

Most people get life insurance which only pays out in the event of death. Families are SIGNIFICANTLY MORE likely to be financially affected by disability than death. The Social Security Administration predicts over 1 in 4 adults will be disabled at some point BEFORE age 65.

Some workers qualify for disability benefits from social security. However, the average monthly payout in 2019 was only a little over $1,000/month—not enough to replace most people’s income (Wondering how much disability benefit you qualify for? Check your “My Social Security” Account). Five states (CA, HI, NJ, NY, RI) provide some disability benefits, but only for the short-term.

Where can I get long-term disability insurance?

We shopped around the old-fashioned way. Now you can save time and money with Policy Genius which allows you to compare different companies /policies.

Why TERM Life Insurance is the best

Term Life Insurance pays out if the covered party dies during a certain period of time (or “term”) e.g. 15 years. 30 years, etc.

Why it’s the best:
  1. AFFORDABLE — probably costs less than you think.
  2. It’s usually all you need. Over time as you save & invest, you become less dependent on the breadwinner’s income. Kids get older, the primary caregiver has more time to work, etc. Or you eventually save/invest enough that you’re essentially “self-insured” against being dependent on the breadwinner’s income.
  3. “Whole Life” Insurance is expensive and unnessary. It tries to sell itself as an investment. The thing is: it’s an underperforming “investment.” If you bought term life insurance instead and put the rest of your money in an actual investment, you’d be better off. The only people who will recommend getting whole life: insurance salesmen. 😜

Calculate if you have ENOUGH Life Insurance

Note: If your spouse tells you, “We have life insurance through workDOUBLE-CHECK THE AMOUNT! It’s often ~$50,000, when you usually need an amount closer to $500k – $1 Million of coverage (calculate how much life insurance you need).

How much does term life insurance cost?

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Financial Coaching Lisa Schader

Lisa Schader – Founder @MoneyFitMoms