How To Fit Life Insurance Into Your Budget

Many people have a misconception that life insurance is unnecessary, or that it’s too expensive even if they did want to buy it. But neither of those things are true: life insurance provides your family with an important financial safety net in case of the unexpected, and it can be surprisingly affordable. 

You don’t have to worry about being able to afford life insurance because there are many types of policies, meaning there is one to fit almost any budget. If you are considering purchasing a life insurance policy for your family, we can help you figure out exactly how to fit it into your budget, although it shouldn’t be too difficult, since life insurance can cost as little as $30 a month!

Is Life Insurance Possible On a Budget?

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Many people think that life insurance is expensive, but you can get an affordable plan, even on a budget.

Many people overestimate the cost of life insurance, but you should know that there is a policy out there for everyone, and that many policies are much more affordable than you think. According to a study from 2020, 65% of people did not buy life insurance that year because they thought that it would be too expensive. Not only did they think a policy would be too expensive, but they also overestimated the cost to be 3 to 5 times the actual amount.

Just consider this example rate: a woman in her 30s can buy a life insurance policy with $300,000 in coverage or more for as little as $15 to $30 a month. It’s important to note, though, that multiple factors go into determining an individual’s policy rate, including their health, age, etc. 

How To Fit Life Insurance Into Your Budget

If you want to start budgeting for a life insurance policy, you should start by tracking your spending. One way you can do this is by keeping a spending journal. Write down how much you spend every month, including in your list expenses like rent or mortgage payments, car insurance, groceries, utility bills, credit card bills, and any extras. 

Once you’ve done this, if you are finding it hard to fit the premiums for your life insurance policy into your monthly budget, you can look at your journal for ways to cut any unnecessary spending. This can include little things that can add up, like daily coffee runs and online impulse buys. Making cuts can be tough, remember that life insurance can protect your family in the long run,  while online shopping just takes away from what you could be leaving for your family. 

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After seeing that you can find an affordable life insurance policy, then the next step is to decide how much coverage you need.

After determining how much money you can spend on a monthly life insurance premium, the next step is to determine how much coverage you need. If you spend a little time comparing life insurance policies from different life insurance companies. you should be able to find a great policy for a price that works for you.

And if price is the biggest issue for you, you can consider a cheaper life insurance policy, such as a term life insurance policy. Term life insurance can be cheaper than permanent life insurance, because term life covers you for a set length of time, usually anywhere from 10 to 30 years, as opposed to covering you for your whole life. You can choose the length of time that you would like to be covered for, and will pay one low fixed premium for the length of the term. 

Need Help?

You should know that life insurance policies are accessible for everyone, and that there are multiple types of policies to choose from, so anyone can find an affordable policy that provides the coverage their family needs. The best way to find the policy for you is by working with a licensed agent from a top-rated insurance company. They can help you find a policy with affordable rates, and give you ideas on how to cut down on costs. We have listed some companies to work with that will be able to find you the most coverage for less. Always check multiple sites to make sure you have bargaining power and to know the advantages of each company. Make sure a hard time for your loved ones isn’t made harder by a financial burden, check life insurance rates today.

About The Author:
Cassandra Love

With over a decade of helpful content experience Cassandra has dedicated her career to making sure people have access to relevant, easy to understand, and valuable information. After realizing a huge knowledge gap Cassandra spent years researching and working with health insurance companies to create accessible guides and articles to walk anyone through every aspect of the insurance process.

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