One of the most common reasons people give for not owning a life insurance policy is that it costs too much money. How can you afford yet another monthly or yearly payment when you’re already struggling to pay your bills?
Well, this is precisely why one should own a life insurance policy, so that they can ensure the people they support are taken care of, if and when they die. After all, if your household finds that money is often tight and paying for essentials like the mortgage and car payments can be a struggle, how would your loved ones cope if their source of financial support–you–was gone?
When budgets are tight, it can be difficult to imagine where the money would come from for a life insurance policy. The good news is that term life insurance can be purchased at a price that anyone can fit into there budget.
Keys to making life insurance affordable:
1. Buy when your young
2. Maintain a healthy life style
3. Keep your driving record clean
Term is the best bet to keep the cost down:
Term life insurance certainly has risen in popularity in recent years, as it’s more accessible to a much larger percentage of the population. What’s more is that term life is also the most adaptable life insurance policy available. Unlike permanent life insurance policies, like universal or whole life, term life can be purchased in the blocks of time or number of years for which you feel you will need life insurance. So, for instance, if you would like to ensure that your children are well looked after until they’re of the age where they can take care of themselves, you may decide that a 20 year term will be more than adequate.
The reason permanent policies can be so much more expensive is because you’re essentially paying for a lifetime’s worth of coverage when sometimes you only need coverage for a certain period of time. As well a permanent policy will build up a cash value and as the cash value grows you will accumulate a sizable cash value account.
Things you could remove from your budget to buy life insurance:
1. Daily Latte
2. A Monthly Pizza
4. Fast Food
Let’s take a look at some rates to see just how affordable term life insurance can be.
The rates below are based on a non smoker who is in the best physical condition. You must have a good driving record to qualify for these rates as well. As you can see in the chart, you should be able to find room in a budget for life insurance. You might have to give up a few of the things you like but it will be well worth the sacrifice.
How Term Insurance Works:
The way a term life policy works is that if you die within the term you chose, the death benefit will be paid out to your beneficiaries. If, however, you don’t die and you survive your term, you can renew your policy, thus extending your coverage.
What will make your term life insurance even cheaper is applying for a policy when you’re relatively young and, more importantly, healthy. Insurance providers give rates based on an assessment of your level of risk; the healthier you are, the cheaper your insurance rates will be.
If life insurance was something you thought you couldn’t afford, find the room in your budget for inexpensive term life insurance. You will be happy you did!
Bio: Brad Cummins is and independent life insurance agent and creator of TermLife-Insurance.com a website where you can compare term life insurance quote side by side.