Today’s post is a part of Life Insurance Day (thanks to the dedicated work of Jeff Rose) .
One of the biggest fears and reasons people don’t get life insurance is that they’re afraid that they are too expensive. They’ve heard from others that to get a reasonable amount of coverage they need to pay a lot of money.
The good news is that you can get life insurance for your family at affordable prices.
Look at Essentials
If you’re still deciding on whther or not you need life insurance, think about any dependents like a spouse or children that depend on your income.
- Grieving: Losing a spouse/parent is life altering and your family needs time to grieve. If you don’t already have savings to cover the time off from work, you may want to include that with life insurance coverage.
- Final Expenses: Do you have a general idea of how much your final expenses would be? We used the estimate of $15,000 for funeral expenses.
- Financial Assistance: Do you want to leave money for your spouse and children to cover debts and help with future expenses?
You’re probably under insuring yourself, but if your options are getting some coverage that you can afford and skipping on getting any life insurance coverage, go for the lesser of the two financial evils.
Go for Term Life Insurance
When faced with the choice of term and whole life insurance, going for term can give you more coverage for less premiums. In case you missed the post on life insurance and couples, term life insurance basically works like this:
Term life insurance is offered for a specific “term” of years – for example, 10 years, 20 years or 30 years. That means if you buy a 30 year term life insurance policy at age 30, you will be covered until you are 60 years old – if you die at any time during the term, your family will receive the benefits of the policy.
That means you should choose a term that you feel comfortable with for your coverage. The money saved from going with term life instead of whole life insurance can be used to pay down debts or to invest.
Shop Around and Save Money on Life Insurance Premiums
When we were shopping for coverage online years ago I was surprised at what I found. For less than $20/month I could get $150,000 in coverage with a 30 year term life policy.
Shop around for a deal on your life insurance policy because it can vary greatly. If you want a free quote try reputable companies like MetLife.
Thoughts on Purchasing Life Insurance
On a final note, please increase your coverage as your financial situation improves. The goal is to build your finances until you can self insure, but in the mean time get some insurance to protect your loved ones.
I’d love to hear from you. How many of you have a life insurance policy? How much do you have in coverage? Around how much do you pay for it?
Photo Credit: woodleywonderworks