Shopping for life insurance and purchasing a life insurance policy can seem overwhelming and expensive, especially when you’re young, but it is possible to find affordable coverage. The cost of not having life insurance can be financially devastating to your loved ones, so making sure it’s part of your budget can pay off in the long run. Learn more about the top tips to budgeting for life insurance and how SelectQuote can help.
Five Tips on How to Budget for Life Insurance
When you miss a payment for your life insurance premium and your policy lapses, your loved ones will be unprotected against financial burden if you pass away unexpectedly. You can help ensure this doesn’t happen by proactively budgeting for life insurance. Here are five tips to help you make sure life insurance fits into your budget.
1. Buying Life Insurance When You’re Young Saves Money
While it can seem intimidating to add another payment to your monthly budget, buying life insurance in your 20s and 30s can actually be ideal for your budget long-term. The younger and healthier you are, the greater chance you’ll have of locking in an affordable life insurance rate.
2. Define Your Financial Goals
To determine the amount of life insurance coverage you need (and therefore how much you need to adjust your budget), you should first define your short- and long-term financial goals. Think about factors like paying down debt, paying your mortgage and saving for expenses like retirement or your children’s education. In addition to the overall coverage amount, you’ll want to consider how much you’ll be willing to spend on monthly or yearly premiums.
3. Calculate Your Budget for Life Insurance
To calculate a budget for life insurance, you’ll need to consider factors like current and future financial obligations, the value of your assets and how many beneficiaries you need to cover. Comparing this information against your current budget will help you decide how to fit life insurance in your financial plan. The key is looking for policies that provide the coverage you need at an affordable rate.
How much life insurance coverage do you need?
How much life insurance you need might look different than what others need, but it’s important to consider the loved ones in your life and any expenses they’d be responsible for in the event of your death. Our life insurance calculator can help you get started on figuring out how much coverage is right for you.
Find Affordable Coverage
Investing in life insurance can seem intimidating, but not only is it worth the peace of mind, it’s often more affordable than you think. At SelectQuote, we’ll take into consideration any outstanding debts you may have, bills that would need to be paid following your passing, final expenses and your budget when comparing policies to find the right coverage amount, carrier and price for you.
4. Shop Around for Life Insurance
Settling for the first cheap policy you find can be risky, as it might not provide adequate coverage. The best way to ensure you’re getting an affordable rate without sacrificing your coverage needs is by shopping around and comparing your options. At SelectQuote, we can do all of that work for you. In just minutes, we can compare policies and rates on your behalf to find the coverage that works with your budget for life insurance. The life insurance companies we work with are some of the most trusted in the industry.
5. Understand the Cost of Not Having Enough Life Insurance
It can be hard to think about, but the biggest risk of not having enough life insurance—or not having any—is that your loved ones will not have enough financial support in the event of your passing. Making room in your budget for life insurance can be beneficial to protecting your family financially.
Trying to buy life Insurance on a budget? Let SelectQuote help find the coverage that is right for you.
If you’re looking for life insurance coverage but aren’t sure how to budget for it, we can help. At SelectQuote, our licensed insurance agents can quickly and easily search highly trusted carriers in just minutes. We’ll take the time to learn about your unique situation, shopping plans and comparing rates on your behalf to find you the right fit.
