Life Insurance: Buy What You Can Afford

Life Insurance: Buy What You Can Afford

There are a myriad of formulas that can help you determine how much life insurance you should carry. Some use a multiple of your annual income, others will consider your current debt and dependents. Is there a simpler way to determine how much life insurance a person should have?

It may be as simple as purchasing an amount that you can afford.

You see, if you secure more life insurance than you can afford or if you place a priority on other things in life, you may not be motivated to keep that life insurance in force. Of course, if the policy is not kept in force through timely payments, it fails to do its intended job. So while some large amount of life insurance may be warranted and beneficial, if it doesn’t fit in your budget, it does little good. This is particularly true with whole life insurance that can build value the longer it is kept in force.

What this means, of course, is that even if you don’t feel you can afford the amount of life insurance that may be appropriate for your situation, you should at least acquire something to get started. Perhaps you’ll start with enough to cover final expenses and debts like credit cards and student loans. This will at least provide some comfort and peace of mind for those left behind. As your financial situation improves, revisit your life insurance plan to see if you can adjusted upward. The point is to get started at some level now.

We can help. Our independent insurance agents can shop multiple companies to find the best coverage and price for you. They can explain your options when it comes to term or whole life insurance. They can help you get started while perhaps even setting a goal for future coverage.

The process is simple. Just answer a few basic questions and make your first premium payment to bind your coverage. If you are in reasonable health, there likely won’t even be a physical medical exam required. You’ll have at least some coverage and be started on your path to more financial security for your family.

Don’t wait. Remember, the younger you are when purchasing life insurance the less expensive it can be. Contact us today.


Do you have questions about your insurance? Find an insurance agent near you with our Agent Finder

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Search All Blogs

Search
Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Want to learn more about
our blog writer?

Read more about KayLynn's background.

Search All Blogs

Search
Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

Four Needs Life Insurance Can Help Fulfill

Life Insurance May Be More Versatile Than You Think

Term Insurance: Big Protection at Affordable Rates

If You Are Entering a High Responsibility Portion of Life, Term Insurance May be the Answer

Funerals, Life Insurance and Flowers

How Funerals Have Changed in Recent Years

The Difference Between Burial Insurance and Life Insurance

Do You Have Sufficient Life Insurance for Your Situation?

Why a Million Dollar Life Insurance Policy May Not Be Enough

The Time When a Million Dollars in Life Insurance May Have Seemed a Bit Much

Creating a Life Insurance Inventory

What Do You Want Your Life Insurance Proceeds to Accomplish?

Life Insurance: Why Waiting Limits Your Options

Waiting to purchase life insurance just may limit your options. Here’s how to maximize your choices when buying life insurance.

Five Cents a Week for Life Insurance? Wait…There’s more!

There Was a Life Insurance Version of the Milk Man and Home Doctor Visit

The Difference Between Term Life Insurance and Permanent Life Insurance Explained

This is a Great Way to Start with Life Insurance

A Closer Look at the Life Insurance Waiver of Premium Benefit

Many Life Insurance Policies Contain a Powerful, Hidden Benefit

Leave a Comment