Understanding Local Financial Realities
By Elisabeth Dawson, Founder of Copia Wealth Management & Insurance Services
As someone who’s been helping families in San Diego for over 25 years, I often get asked this question: “Elisabeth, do I really need life insurance?”
And I get it. It’s not the most exciting topic. No one wants to talk about worst-case scenarios. But here’s what I always say: If your income helps support a family, then yes—you absolutely need life insurance. As a life insurance specialist, I can tell you this is especially true in San Diego.
Let’s talk about why.
The High Cost of Living in San Diego
San Diego is a dream place to live. We’re surrounded by ocean breezes, beautiful neighborhoods, and a vibrant, active lifestyle. But all that sunshine doesn’t come cheap.
Here are just a few local realities:
🌴 Housing
As of 2025, the median home price in San Diego is hovering around $950,000. For many families, this translates into monthly mortgage payments of $4,000 or more.
Rent isn’t much easier—averaging $2,800 to $3,500 per month for a modest two-bedroom apartment.
🧒 Childcare
Working parents pay $1,500–$2,000 per month, per child for full-time childcare. That adds up fast, especially if you have more than one child.
🛒 Groceries & Gas
San Diego’s grocery prices are 13–18% above the national average, and gas prices are consistently among the highest in the country.
🏥 Healthcare & Insurance
Even with good employer coverage, families can expect to pay thousands annually in premiums, co-pays, and out-of-pocket costs.
All these expenses stack up to create a lifestyle that requires careful financial planning—and protection.
What Happens If Something Happens?
Let me ask you something. If something happened to you or your spouse tomorrow, how long could your family maintain your current lifestyle?
Would the mortgage get paid?
Would the kids stay in the same school?
Would your partner be able to work full-time and still handle everything else?
I ask these questions not to scare you—but to empower you.
Because here’s the truth:
Life insurance isn’t about dying—it’s about living.
It’s about making sure the people you love can keep living the life you built together, even if you’re not there to provide for them anymore.
Life Insurance as a Financial Safety Net
In a high-cost city like San Diego, life insurance acts as a buffer between grief and financial devastation.
It allows your family to:
- Pay off the mortgage or continue rent payments
- Cover daily expenses like groceries, bills, and gas
- Afford childcare so the surviving parent can keep working
- Fund college or future goals for your children
- Maintain health insurance during employment transitions
- Avoid dipping into retirement accounts or selling assets at a loss
It replaces the economic value of your life—something most people never stop to calculate.
The Human Economic Value of You
In my book Retirement by Design, I talk a lot about Human Economic Value. This is the total amount of income you are expected to earn between now and retirement.
Let’s say you’re 40 years old, earning $125,000 per year, and you plan to work until age 65. That’s $3.1 million in future income.
Now ask yourself:
If something happened to you tomorrow, would your family be able to recover from the loss of $3.1 million in future income?
That’s what life insurance is designed to protect.
Real-Life San Diego Example: The Cardenas Family
A couple I recently worked with—let’s call them Alex and Maria—live in the Clairemont area. They have two kids, a mortgage, and two full-time jobs.
Maria asked the same question you might be asking now: “Do we really need life insurance if we’re both young and healthy?”
Here’s what we discovered:
- If Alex passed away unexpectedly, Maria would lose over $150,000 of household income per year
- Their monthly expenses, including the mortgage and daycare, totaled over $9,000
- Without proper coverage, Maria would need to sell the home, change jobs, and possibly move closer to extended family for help
We built them a life insurance plan based on real numbers, not guesses. Now, if something happens, they have peace of mind. Their family is protected.
That’s the power of a well-designed life insurance strategy.
Term vs. Permanent Insurance: What’s Right for You?
There are many different types of life insurance, but here’s a simple way to look at it:
⏳ Term Insurance
- Affordable coverage for a set period (e.g., 20 or 30 years)
- Ideal for replacing income during peak earning years
- Doesn’t build cash value
💼 Permanent Insurance (Whole Life, Universal Life)
- Lifetime coverage
- Builds cash value over time
- Can be used as a tax-advantaged asset in retirement planning
At Copia, we tailor your coverage to your goals. Sometimes that means term insurance. Sometimes it means a mix of term and permanent. It always means a plan designed for your life—not someone else’s.
What Coverage Do You Really Need?
There’s no one-size-fits-all number, but here are a few questions I ask clients:
- What would your family need to maintain their lifestyle for the next 10–20 years?
- Do you want to pay off your mortgage or simply cover the payments?
- Are there future expenses you want to plan for, like college or elder care?
- How much income would your spouse need to maintain their work/life balance?
Once we know your goals, we work backward to determine the right amount and type of coverage. It’s not about “how much can I get?”—it’s about how much protection does your family need to feel safe and secure?
You’re Not Just Buying a Policy—You’re Building a Plan
I don’t believe in selling insurance. I believe in building financial foundations.
Your life insurance policy should be a coordinated piece of your larger wealth strategy, integrated with:
- Your retirement goals
- Your estate planning
- Your tax strategy
- Your legacy vision
That’s what we do at Copia. And that’s why life insurance is never “just insurance”—it’s part of your design for a secure, abundant future.
Let’s Talk About What Matters Most
If you’ve been putting off the life insurance conversation, I understand. It’s emotional. It’s easy to deprioritize. But protecting your family’s future is one of the most loving, responsible things you can do.
Let’s sit down together and look at the real numbers. Let’s build a plan that works for your life, your family, and your vision for the future.
You don’t need to do it alone. I’m here to help.
Schedule your complimentary strategy session today and let’s find out what kind of life insurance—if any—makes sense for you and your family.
Because peace of mind is priceless. And your family deserves nothing less.
Warmly,
Elisabeth Dawson
Founder | Financial Advisor | Educator
Copia Wealth Management & Insurance Services
📍San Diego, CA
CA LIC #0C71264, #0G81294
Investment advice offered through Copia Wealth Management Advisors, Inc.
Copia Wealth Management Advisors, Inc. is a registered investment advisor.
