iQuanti: Despite how beneficial life insurance can be, you might find it difficult to justify the costs if you're currently on a tight budget. Even though all life insurance policies come with monthly insurance premiums you'll need to pay, they aren't all expensive. The following guide describes what life insurance is and how to position it as a top priority even when you're short on cash.
Why It's Important to Obtain Life Insurance
Life insurance is essential if you want your family to be provided for when you're no longer around. However, having enough money is also important to provide for your family's current needs. Life insurance doesn't need to be restricted solely to people who have a considerable amount of savings.
You may be able to find a good life insurance policy that will provide for your loved ones that doesn't require you to make high monthly payments. In most cases, the more affordable life insurance is term life insurance, which provides you with coverage for a set period of time. This period can be 10 years or 30 years. Policies with the shortest terms will have more affordable payments than the policies with lengthier terms.
You could pay around $17-$25 per month for coverage that lasts for 15 years. Remember that the lowest premiums are usually available to people who don't smoke and are in great health. Finding an affordable policy shouldn't be very challenging because there are quite a few to choose from that will suit your needs.
How to Prioritize Life Insurance When You're on A Strict Budget
If you want to prioritize life insurance while you're on a strict budget, the term life insurance policies mentioned previously allow you to receive hundreds of thousands of dollars in coverage for a relatively small sum of money.
Permanent policies can be much more expensive but will offer you lifetime coverage and a cash value account that allows you to build your savings effectively. Premiums can be very low if you can obtain a 10-year policy. If you purchase a policy when your child is born, a 20-year term gives you coverage until your child has reached college age.
If you're set on receiving a life insurance policy with a lengthy or permanent term, you can reduce your costs by applying for a smaller policy. This means that the death benefits your family receives would be lower. If you eventually have more money in your savings, you could switch over to a more significant policy with more benefits.
The Bottom Line
When money is tight, it makes sense to prioritize costs and focus on the most significant expenses before anything else. While life insurance can be costly, term life insurance plans are typically affordable and allow you to benefit from life insurance without dipping into your savings.
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Original Source: How to Make Life Insurance a Priority When Money is Tight
