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This Article Will Detail How You Can Apply For Life Insurance With A $100 A Month Budget
Most likely you’re reading this article because you’re looking for life insurance either on yourself or a loved one. You understand that it’s important to carry life insurance to cover all sorts of financial obligations and replace your income should you die earlier than expected.
You also know that you need to operate within the context of reality. What I mean by that is that you live on a budget. You have a set amount to spend every month on food, bills and other expenses and adding life insurance will add to that total. You have predetermined to be able to add insurance to your other monthly expenses you have to keep it under $100 a month. If this describes your situation, then you’ll find this article very useful.
I will provide tips and strategies on how you can effectively keep your life insurance coverage below the $100 mark. I’ll also show you some sample rates for term life insurance, whole life insurance, and guaranteed universal life insurance rates that are under $100 a month and show you their corresponding amounts of coverage.
The goal for this article is to inform you about the options available for $100 coverage and offer our services if you find the information that follows helpful or have additional questions.
Here’s An Overview Of Today’s Topics:
- Tips For Getting Life Insurance Premiums Below $100 A Month
- What Kind Of Life Insurance Should You Buy?
- Consider A Shorter Term Insurance Period For A Better Premium
- Avoid Riders If Possible
- Work With A Broker
- Last But Not Least, How Do You Eat The Elephant?
- Sample Rates For Term Life Insurance At $100 A Month Or Less
- Sample Rates For Guaranteed Universal Life Insurance Coverage At $100 A Month Or Less
- Sample Rates For Final Expense Burial Insurance
Tips for getting life insurance premiums below $100 a month
In the following section I will detail all the strategies that I’ve utilized during my time as a life insurance agent to improve coverage amounts and life insurance policy premiums. These tips are especially important if you are trying to find coverage for $100 or less per month.
Consider getting an exam
If you’ve already done some research on life insurance you probably have some vague familiarity with what’s required in a life insurance exam. A life insurance exam requires an applicant to either visit a doctor’s office or set up a home visit where the doctor comes to your home. Typically during an exam the doctor will take a blood pressure reading, have you fill out a health questionnaire, and take a blood sample.
An exam essentially gives the most up-to-date information to the underwriters at a life insurance company. The more current your health information is, the higher likelihood an underwriter will be more willing to be competitive on pricing.
An exam is optional, but here’s my recommendation. If you’re in good health and you don’t have a fear of needles, consider getting an exam along with your life insurance policy. In many cases this can help lower your premiums, making coverage more affordable than if you did a non-medical application.
I took my personal life insurance policy out several years ago. If you compare the price I would have paid with a non-medical policy versus an exam policy, I’m literally saving well over a thousand dollars a year. The reason I opted for an exam was that I knew I was in good health and that it could help lower my premium. It was a simple way to qualify for more affordable coverage.
The only exception to taking an exam is if you are qualifying for a burial insurance plan or a plan with smaller than normal coverage. These typically do not require examinations and the price point is low enough that they’re within a few dollars of those that may offer exams, so its simply easier to not take an exam with these type of policies.
What kind of life insurance should you buy?
I believe the process of buying a life insurance policy is totally dependent upon what your goals are in combination with your budget. In fact,the type of policy you end up purchasing will be a combination of those two factors. Here’s what I mean. In the process of buying a life insurance policy for $100 a month or less, you’re going to most likely be offered two different types of life insurance products.
The first is called term insurance. The second is called permanent life insurance. What follows is a brief description of how these types of insurance work and why you would choose one type over the other.
Term life insurance is purchased by approximately 80 percent or more of the population. The reason term life insurance is so popular is because:
- The amount of coverage per dollar of premium is 10 times more coverage relative to a permanent life insurance plan.
- Term life insurance tends to be a policy that matches many of the goals that people have when they buy life insurance.
Common goals when buying life insurance include:
- Replacing lost income
- Paying down final expenses or debt
- Covering mortgage payments
- Burial expenses
The great thing about term insurance is that you can buy enough coverage to satisfy all of those concerns financially easier than you can with a permanent life insurance solution. For those of you reading this article who are wondering which kind of policy you will end up getting, most likely it will be term life insurance.
Permanent Life Insurance
Permanent Life Insurance, unlike term insurance, is designed to never cancel due to age or health. One of the greatest benefits of permanent life insurance is that as long as you pay the premium as required, the policy is designed to never cancel. You’ll never have to risk outliving your coverage like you will with term life insurance.
The most popular form of permanent life insurance includes whole life insurance as well as universal life insurance. Whole life insurance is designed to be the ultimate permanent life insurance solution. The premiums never cancel due to age or health, and it develops cash value over time which you can borrow and use much like a savings account.
Universal Life Insurance is similar in some circumstances. However, there are different functions to a universal life insurance plan that can cause prices to go up, if not properly designed, and could end at an earlier date than originally defined.
Considering all the benefits of permanent life insurance, the biggest reason that not many people buy permanent life insurance is simply because of how much it costs relative to term life insurance.
When I was looking at my own life insurance coverage and calculating my financial needs, i.e. to take care of my debts and obligations and take care of my family if I passed earlier than expected, I estimated I would need to spend approximately $2,000 a month on a whole life insurance plan to satisfy that particular objective.
At that point in my life, it didn’t make much sense to invest that much money into a whole life insurance plan when I could get the same goals accomplished with term insurance at a tenth of the cost of whole insurance.
The biggest reasons to consider purchasing permanent life insurance are more commonly focused on final expense coverage and business planning purposes. A lot of people buy permanent life insurance because they have a permanent problem they want to solve, such as burial expense.They want to ensure they won’t outlive the insurance or have it cancel after a set amount of time.
If you are looking for a permanent solution, then permanent life insurance in that regard is well worth the price.
Regarding business planning purposes, permanent life insurance is a good pick for buy-sell agreements and to cover key people in your business or protect business partners to ensure the business continues without having to dip into reserves or potentially harm the business continuity.
Consider a shorter term insurance period for a better premium
My recommendation generally to those that purchase term insurance is to max out the amount of coverage they can purchase. Why? Because usually in my experience people need more coverage than they think they do. Some people think they need a lot of coverage, but what tends to happen is they need more coverage than they think.
However, that advice runs up against the wall when someone is working with strict budget guidelines where they have to keep the premium under $100 a month. What’s the solution?
Instead of picking and maxing out your term insurance at the 30 year mark, consider getting a 25, 20, possibly 15 year term insurance period to lower your premiums down below that $100 a month level. This is a great solution to get life insurance on the books because ultimately that’s what it’s about.
Avoid riders if possible
One of the newest things with life insurance policies is to offer all sorts of unique and sometimes beneficial rider’s. A rider is an added benefit to a policy that you purchased upon taking the policy out.
Most common riders include things like extra accidental coverage, disability waiver coverage, and more exotic riders including disability income that pays a benefit if you become hurt, can’t work, or suffer from a chronic illness.
These additions can be incredibly helpful, but they come at a price. They can add a substantial amount to your premium, which can push that monthly payment number over the edge.
How to determine which riders are best
I believe personally that the best riders to include in a coverage plan are disability premium waiver riders and quite possibly the children’s term insurance rider if you have kids. These riders are beneficial for the following reasons:
The disability waiver is great because if you do get hurt and can’t work, then you don’t have to pay the premiums after a period of time, but continue to keep your policy.
I have worked a lot with lower income folks who went through disability but lived a good middle class life before they had a heart attack or got hurt and couldn’t work anymore. The only reason they kept their insurance was because this waiver was attached to the policy.
Children’s coverage is great because first of all, it’s very inexpensive. Secondly, many of these policies allow the child to carry the coverage themselves once they reach a certain age, usually around the 20 year mark, without added health questions.
This is especially useful if later in life they can’t qualify for insurance because of health problems.
Work with a broker
One of the best ways to reduce your monthly coverage cost is to work with a broker rather than an agent. Here’s the deal in the life insurance world – every company has a unique guideline as to how it rates and judges certain health elements, lifestyle issues and so on, and even minor issues can lead to major increases in premiums.
The other day I was looking at premiums for a prospect of mine who was 29 years old and wanted a half million dollars in coverage. The difference between the low price and high price was approximately $70 a month. This is all for the same kind of coverage with a highly ranked company. The coverage would effectively do the same thing regardless of which company they went with, yet they would pay over $800 more each year if they went with the more expensive policy.
The solution to this is to work with a broker like us at Buy Life Insurance for Burial who represent a multitude of companies and can shop and compare prices. We take your unique health situation and figure out which company is going to give you the best overall package deal so you don’t have to spend a penny more than is necessary.
Working with a broker is one of the easiest ways to lower your premiums without having to dramatically change your lifestyle or do something that’s really hard like quit smoking or lose 50 pounds.
Last but not least, how do you eat the elephant?
I like using this saying when I meet with clients who understand they’ve got budgetary limitations, but aren’t necessarily 100 percent satisfied with what they can afford. I advise them: How do you eat an elephant? One bite at a time. Here’s what I mean.
When you take out a life insurance policy, I can mostly promise it won’t be your last. If you’re like many of my clients, you have to start somewhere and pick out a life insurance policy because you know you need something, but you have budgetary restrictions. You have to meet these restrictions, but as you go through your life and career, you’ll pay down debts and free up funds.
If you experience income boosts and pay down debt you may consider at a later point adding more coverage when it makes sense. What a lot of people end up doing is adding multiple policies to their original policy. There’s no real rules against doing this. Eventually you build up a life insurance program that ultimately suits your goals.
When you get started, please don’t throw the baby out with the bath water. Even if you’re not fully satisfied with the amount of coverage you get based on your budget, go ahead and buy it anyway. You can always add more at a later time when your budget allows you to go beyond $100 a month.
Sample rates for term life insurance at $100 a month or less
In this section I’m going to show you life insurance coverage amounts based off of $100 a month price range. The purpose of showing this table is to give you a good idea of what you may be able to qualify for with a budget of $100 or less at different age ranges from 25 all the way up to 75.
We will also look at 10, 20 and 30 year term table rates. These are preferred rating quotes with a highly ranked company. Understand, these are only examples, not claims as to what you may qualify for. To see what rates you may qualify for you must first fill out an application and possibly take an exam to see what your eligibility might be.
10 Year Term Life Insurance Rates
Sample rates for guaranteed universal life insurance coverage at $100 a month or less
In this section we are going to take a look at guaranteed universal life coverage for people between 25 to 75. We will break rates down by males, females, smokers and nonsmokers at coverage amounts capped at $100 a month.
Guaranteed Universal Life Insurance Rates
Sample Rates for Whole Life Insurance at $100 a month or less
Whole Life Insurance Rates
Sample rates for final expense burial insurance
In this section we’re going to take a look at burial insurance for people age 50 and 85. These rates are for preferred coverage with a best carrier and meet the budget of $100 per month.
Burial Insurance Rates, Age 40 to 90*
Rates For $5,000 In Burial Insurance
Rates For $10,000 In Burial Insurance
Rates For $15,000 In Burial Insurance
Rates For $20,000 In Burial Insurance
Rates For $25,000 In Burial Insurance