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In This Article I’m Going To Share What I Recommend To My Clients To Give Them The Best Opportunity To Get A Life Insurance Policy At Or Under A Budget Of $300 A Month
Most likely you’re reading this article because you’re either looking for coverage on yourself or a family member. You are aware that in order to keep the policy and maintain payments for the long term without hurting your overall financial profile you need to keep the premium at $300 or less per month. But easier said then done, right?
If your goal is to get coverage at an affordable rate, you’ve come to the right place. The following suggestions are recommendations I make on a regular basis to my clients to get them the best possible coverage on a budget of $300 or less a month.
Here’s An Overview Of Today’s Topic:
- Know Your Budget And Stick To It
- Work With A Broker
- Consider An Exam
- Decide If You Need Term Insurance Or Permanent Life Insurance
- If You Decide On Term Insurance, Go With A Shorter Term
- Choose Only Necessary Riders
- Remember, Something Is Better Than Nothing
Know your budget and stick to it
First of all, congratulations on making the decision to get life insurance and for figuring out a budget that makes sense for you.
One of the biggest discussions I have with my clients is coming up with a budget that they can easily afford to keep their premiums within a range that won’t cripple them financially. The reason this is very important is simple. I’ve been in business since 2011. I’ve helped over 3,000 people get life insurance and I feel it’s a shame when somebody pays too much for coverage and has to drop it within a short period of time because they simply can’t keep up with payments.
It’s not only a waste of money, it ends up hurting the family. And you’re essentially back in the same position where you started, which is with no insurance. Whereas if you make time to figure out what you can afford in your budget, you’ll find that you’ll be much better off and be able to keep your life insurance around long enough to where hopefully it will meet the needs you originally set out to cover.
It’s far better to buy life insurance you can afford and keep it for a long time than buy more comprehensive coverage and drop it within a short period of time.
Work with a broker
This is one of the most important tips that I would highly recommend you employ.
When you work with a broker you’re working with somebody like us at Buy Life Insurance for Burial that has access to a variety of different life insurance companies.
What that means for you is that we take your unique health profile and your goals as far as what kind of life insurance you want and then shop that particular type of package with our most competitive companies to see who’s going to give you the best offer overall in terms of value and price.
Many times working with a broker means you can save as much as 50 percent on your life insurance rates versus what you would see at other companies such as the local car insurance shop or the companies that sell policies on TV who generally have very limited options and may not give you the best overall package.
We’re passionate at Buy Life Insurance for Burial about getting the best overall deal because you deserve it. You don’t want to spend more than you have to. You want peace of mind from your coverage, whatever you end up purchasing.
Consider an exam
Generally speaking, as a premium budget increases in size, the need for an exam also increases to get the best premium. It makes more sense with smaller amounts of coverage, especially those that pay $25 to $50 a month, to opt not to pay for an exam because the coverage amounts are small enough that an exam wouldn’t make a difference in the price.
But as policy sizes increase, budget sizes increase and an exam becomes a more crucial element for determining insureability. Plus if you opt not to take an exam and do what’s called a non-medical application for life insurance you’ll find that your price point will probably be 50 to 100 percent more.
There’s the potential for significant savings by taking an exam, despite what a lot of organizations press upon you, which is to go ahead and opt for a non-medical application. It’s easier, but with convenience comes costs. Generally my advice is to always go ahead and schedule an exam because most likely it will save you money in the long run.
What to expect at an exam
It’s very easy to set up an exam. Here’s what you can expect:
In most circumstances, you’ll either go to an exam facility or they will come to you.
They’ll take vital signs such as blood pressure, they may take a saliva sample, and they will withdraw blood for testing purposes as well as ask you to answer health related questions.
Under some circumstances, typically with larger policies, you may be required to do a urinalysis, EKG, or stress test. It’s important that you prep ahead of time by getting a good, restful sleep and eating healthily several days in advance to make sure that your results after the exam are complimentary.
As far as life insurance coverage goes, an exam is worth the small hassle because it can save you literally thousands of dollars a year.
Decide if you need term insurance or permanent life insurance
This comes down ultimately to your goals and what it is that you’re wanting to accomplish. Generally speaking, term insurance is designed to cover for temporary obligations. Most people who buy a term insurance plan are looking to protect against passing away earlier than expected, which could cause the loss of their future income or the loss of deposits into a retirement plan every month.
They want to ensure their loved ones are covered should anything unexpected happen to them, and in consequence, their income.
What you’ll find from a budgetary perspective is that term insurance will cost you less money, sometimes five to 10 times less, than a corresponding permanent life insurance plan. But permanent life insurance does provide a worry-free guarantee of coverage, regardless of age or health decline.
Permanent life insurance
Permanent life insurance is designed to give you permanent life insurance protection for life. Permanent insurance is most often desired for final expense coverage, income replacement, and retirement funding.
For a business, permanent life insurance is commonly used to cover key people or to fund a buy-sell agreement in a partnership. If a permanent plan is something that’s interesting to you, you may find that a universal life plan is the way to go. Universal plans offer a slightly lower price relative to whole life insurance. But ultimately, a lot of it comes down to how the policy is designed.
If you decide on term insurance, go with a shorter term
If you pick term insurance, consider a shorter period of time to lower the premium. You may find that you will get a better deal if you lower your term amount from 30 years down to 25 years, 20 years, or even 10 years.
Generally speaking, my recommendation to most of my clients is to get as much term insurance as possible with the main reason being that most people end up needing more coverage than they originally thought. So consider reducing the length of time only if all other options are exhausted.
Choose only necessary riders
If you are on a budget, what you don’t want to do is tack on a bunch of riders to your insurance policy. At a $300 premium, it would only take the addition of a couple of riders to sky rocket that amount to well past $400.
My recommendation for clients is to sit down with us at Buy Life Insurance for Burial and let us help analyze what riders, if any, are recommended given your particular circumstances. Ultimately riders are something that should enhance your predefined goals. That’s it. Not add unnecessary sizzle to the steak.
Remember, something is better than nothing
A lot of people, no matter what budget range they’re comfortable with, are going to start off with coverage that may not necessarily give them the most amount of coverage that they intended to have. It’s important to remember, especially when you are working with a budget that may limit your coverage, that something is better than nothing.
You may be like a lot of my clients where they know that there is an absolute necessity to buy life insurance, but they may not be able to get exactly what they want because of their budget. And that’s okay. It shouldn’t be a reason to not buy any insu
rance at all.
My recommendation is to start with some kind of life insurance, whatever it is that you can comfortably pay for and qualify for, and then look down the road within a couple of years to consider adding more coverage on top of the coverage that you have.
A saying I like to share with my clients is that the way we eat an elephant is one bite at a time. The same goes for life insurance. You’ve got to do it piece by piece and in many cases own multiple policies.
Sample Life Insurance Plans
10 Year Term Life Insurance
Whole Life Insurance
Guaranteed Universal Life Insurance