Top 5 Ways to Think About & Budget for Life Insurance
Because term life insurance is important for many people and families you also need to make sure that it’s affordable. It doesn’t make sense to have a term life insurance policy that ends up being something you can’t afford. So with this in mind there are a couple of great tools you can access through the Pivot website that will not only help you with budgeting but also help you plan and think about retirement.
A little later in this blog I will tell you about those tools and where you can find them on the Pivot web site, but first here are the top 5 ways to think about term life insurance and budgeting for it:
1. Don’t look at term life insurance as an expense. Look at it as a necessity. If you don’t have term life insurance and pass away what is your family going to do? I call it a necessity payment because it’s essential to help protect your family. It’s like car insurance or homeowners insurance. These are essential things and without those insurances you would be in trouble.
2. Do you buy coffee or lunch every day? Add up what you spend on small items over a month. It may surprise you how much those small debit card purchases add up to. Look at altering your spending habits and dedicate some of that money to life insurance.
3. If you have young children now you can educate them about your term life insurance and the importance of it and also how you budget for it. This is a great way to pass on knowledge and money/budgeting skills.
4. There’s a saying that goes “life insurance will never be cheaper than it is today”. The older we become, the higher the cost of life insurance. If you purchase a level term life insurance policy this means your premium will stay the same price for the term period you choose. How’s that for budgeting and planning? Level is the key word here.
5. What is the cost of NOT having term life insurance? You budget and plan all of your other expenses and needs such as mortgage, automobiles, heat, electricity, phone, computer, school, college and everything else in your life. If you don’t have a term life insurance policy and you pass now it’s up to your family to take care of everything, but with what? Savings? Tapping into IRA’s or retirement accounts?
All of these expenses and needs are going to add up to a significant number as compared to a term life insurance policy that would provide the protection based on affordable monthly premiums. So based on your health and age you may be able to purchase a large amount of term life insurance for a low price. For me personally, I would rather pay the monthly premium and know my family, home and everything else can be handled, rather than my family being faced with the daunting task of scrambling to find the money to pay for all of their needs.
As I mentioned earlier there are a couple of tools that can help with budgeting and retirement, that will help to include life insurance. Click on the links below and look to the right hand side of the page.
Budget Tool 1. Family Budget Planner. Use this tool to help develop a family budget. It will give you a great way to easily help you get started with planning and budgeting!
Budget Tool 2. Retirement Calculator. Now is the time to start thinking about your future. Retirement may be far off, it depends on age, but it seems that everyone is always saying how fast time flies. Get started now by using this tool to help you plan for the future!
About the author: Dan Cody has been in the life insurance business for over 7 years. He loves playing a variety of instruments including the guitar, bass, drums, and piano. He also supports cancer research foundations and volunteers at local pet shelters. Dan enjoys helping customers understand life insurance, so they can find a solid policy that fits their needs. You can reach Dan at 1-800-651-1953 or DCody@Pivot.com.