Can I Really Afford Life Insurance?
Many people are interested in buying life insurance, but some never take action because they’re concerned about the price. While this concern is natural and entirely understandable, it should not be something that holds you back from learning more about life insurance.
Even if you find that a policy is too expensive for you right now, you’ll gain knowledge that you can use to your advantage in the future.
Before you do anything else, though, you should first turn your attention to the types of life insurance, the cost of each type, and your budget as a whole. For example, term life, whole life, and universal life are the three most common types. All of these have pros and cons, so you should compare a handful of quotes to better understand what you’re getting for your money.
Also, it’s a good idea to review your budget. More specifically, pay close attention to how much you’re already paying for insurance. For instance, you may be paying for limited benefit fixed indemnity insurance, home insurance, and car insurance. With that out of the way, you’re in a better position to take the next step. As you do so, here are some questions you can answer to clear the air and make a final decision on whether now is the time to buy.
1. What type of life insurance are you most interested in?
This is the best place to start. Knowing your options allows you to shop accordingly. For instance, term life insurance is typically the most affordable, as you’re only paying for coverage for a predetermined period of time, such as five or 10 years. Other types of insurance, such as whole life, have benefits, too. With whole life, you can borrow money from your policy. That may be something that suits you financially down the line.
2. Are you confident in your ability to pay for the policy in the future?
There’s more to buying life insurance than the here and now. You must also consider if you will be able to afford the policy in the future. If you let your coverage lapse, you’ll have to reapply when you want to buy a policy again. The problem with this is that you’re doing so when you’re older, and possibly have a medical condition. Both of these things will result in a higher premium payment.
3. Which life insurance companies offer the lowest prices?
This is when it pays to do your homework. The best way to compare life insurance quotes is to use an online broker. With one basic application, you can receive policy and pricing information from a handful of companies. The lowest-priced policy isn’t always the best, but you should always keep money in mind when buying coverage.
4. Are there any steps you can take to save on life insurance?
As noted above, shop around online to put yourself on the right path to buying a solid policy at a reasonable price. Along with this, there are other things you can do, such as buying when you are young and healthy. Furthermore, since most life insurance companies require a medical exam, work on anything that could raise a red flag, such as your cholesterol. And of course, if you drink alcohol or use tobacco products, cut these out of your life.
5. What happens if you don’t make your policy payments in the future?
This is a big concern among many policyholders. They can pay their premium now, but have concerns about doing so down the road. It’s important that you don’t bite off more than you can chew. Only purchase a policy that you know you can pay for over the long run. Even if that means taking on a little bit less coverage, so be it. It’s better than a payment that you struggle to make.
Tip: Before buying a life insurance policy, ask the company what will happen if you do not stay current. This will give you some knowledge to employ when deciding what to buy.
So, there you have it. This information will allow you to decide if you can afford life insurance. Should you find that you can, don’t delay in starting the process. With the help of the internet, you can obtain quotes within a matter of minutes, getting you started a process that can ultimately give you the peace of mind you need in the coming years.