How to choose a life insurance policy on a budget
What if there was something you could do today to protect your family’s financial future without straining your budget?
When you buy a life insurance policy, you do exactly that. But that must be expensive, right? And a hefty premium payment will mean having to play Tetris with your household expenses? Well, it is actually a lot less expensive than some people think. In fact, according to the LIMRA’s insurance barometer study, 50% of Millennials estimated life insurance costs to be six times more expensive than it actually is. That means, instead of estimating for a car payment, think of estimating for a dinner out at a chain restaurant.
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With this in mind, let’s take a look at some straightforward tips for choosing the life insurance you and your family need without breaking the bank.
Adopt a healthy lifestyle
There are a lot of good reasons for wanting to be a little healthier. But did you know that more affordable life insurance is one of them? Making positive lifestyle changes, like exercising regularly and quitting smoking, can do more than add years to your life – they can significantly reduce the cost of your insurance premium.
Don’t make it all or nothing
Ideally, the life insurance policy you choose would help your family cover your final expenses and other significant costs like a mortgage or college tuition. But that may not be an entirely affordable option for you right now. Instead of foregoing a policy altogether, consider one that covers at least some of these additional expenses. Speak with an insurance professional to find a policy that meets your most pressing needs and whatever you can afford beyond that amount. You can add more coverage when you do have the funds.
Bundle up
No matter what stage of life you are in, chances are life coverage is not the only insurance policy you need to budget for. From your car to your home to vacations and even professional equipment, discounts are often available when you hold several policies with one company. Find out what discounts may be available for bundled offerings, and your wallet will thank you.
Think about term life insurance
At some point, someone – a friend, a neighbor – has probably touted the benefits of a permanent life insurance policy. From a guaranteed payout and lifelong coverage to the possibility of cashing out some of the policy down the road, a permanent policy has its advantages. But those are advantages you will pay for. If your aim is to buy life insurance on a budget, a policy that is right for your evolving needs, such as a term life insurance policy, may make more sense. Your premium will be lower, and you will have the option to change your coverage at the end of the term as your financial needs change.
By considering the tips above and performing an honest evaluation of your needs and your budget, finding an affordable life insurance policy that works for you is very much within reach. Our team is here to help you evaluate your options and provide the information you need to make the right decision for you and your family, on any budget.