Tips on How to Budget for Life Insurance

Fit Life Insurance into Any Sized Budget

It’s tempting to skip buying life insurance in Vancouver, WA when you have a tight budget. After all, why spend money on something you cannot hold and that doesn’t fulfill a basic need? What many forget is that life insurance protects your family when you are no longer around to do so. This makes all the difference to their financial stability, livelihood, and quality of life. Most people put off purchasing life insurance until they have more cash flow or when they have time to look for a policy. In reality, life insurance can fit into any budget.

 What You Need to Cover

When you’re looking for life insurance, it’s best not to dive in the deep end and just secure the first policy you see online. Finding the right policy doesn’t have to be time-consuming, but you should be prepared with some documents. A good rule of thumb is to get coverage that is at least 5-10 times your income, but most importantly you should buy what you can comfortably afford. Here is what you need to cover:

  • Personal debt (car, student loan, credit cards)
  • Mortgage
  • Funeral expenses
  • Monthly income your family will need (e.g. future college tuition for your kids, monthly bills, groceries)

How to Save on Coverage

There are some easy ways you can save money on your life insurance policy.

  • Buy a term policy. A term policy will cover you for a set amount of time (e.g. 5 years, 10 years). This policy tends to be much cheaper than buying permanent life insurance coverage which lasts your entire lifetime.
  • Pay in full. Instead of paying monthly, opt to pay annually. Insurance companies will often deduct extra administrative work fees if you purchase your policy in full up front.
  • Compare quotes. Life insurance pricing isn’t the same across the board with insurance companies. Obtain quotes from different companies so that you can be sure you’re getting the best value of coverage.
  • Review the policy. You may be overpaying on your policy, especially if you purchase life insurance through a direct agency that only represents one insurance company. You may be able to obtain a lower rate just by comparison shopping for different companies.

Life insurance can fit into any budget! Luckily, at Action Insurance Group, we work with you to find the right coverage for your needs – whatever your budget. Our life insurance experts are ready to get started. Contact us today for more information.

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