How to Fit Life Insurance Into Your Budget​

Saving money is something which interests us all, especially in these tough economic times. But ironically, among the more common belt-tightening tactics like buying less junk food and changing cable TV packages is canceling our life insurance policies, or not bothering to get coverage at all.

Many would consider this to be insanity, but it's long been known that when times are tough, those expenses that don't provide us with immediate benefits are the expenses which are eliminated first, even if that is our life insurance coverage or that of our children.

In addition, a large percentage of Americans have no life insurance coverage because they see it as an unneeded expense. As well, it's perceived as an expense that is very costly. This overestimation of the cost of life insurance can reach well over one hundred percent of actual life insurance costs.

Before asking the question about how to fit life insurance into our budget, a more important question may be why we should have life insurance coverage.

Benefits Vs. Savings
Having life insurance can end up benefiting your family in ways which far outweigh what you may save as a result of canceling your coverage.

It's never pleasant to think about one's mortality. But these things happen unexpectedly. What if you become permanently disabled on the job, or pass away suddenly? Will your family have enough money in the bank to keep up with things like mortgage payments, utility bills and groceries, let alone the cost of your medical expenses or your funeral?

If the answer is no to any of the above, then life insurance coverage is something you should definitely consider fitting into your budget, especially if you are the primary income earner for your household. It can be difficult to understand just how important your income is to your family's survival until you or your family are faced with existing without it. And waiting until that happens will be too late.

The Hunting Process
Many people see finding life insurance as a hassle, filled with hours of phone calls, terms they don't understand and too many confusing packages to choose from. The key to finding the most affordable company is to first understand the three basic types of life insurance, which are term, whole and universal.

Term life insurance covers you for a set period of years, and you pay the same amount each month for coverage. Whole life covers you until death and has a cash value component, but your premiums increase as you get older. Universal life is really a more flexible version of the whole life policy which also has a cash value component with two options for the death benefit: cash value payout, or face amount plus cash value payout.

Comparing Online
The easiest way to find the right coverage for your family is to go online and get quotes from several companies. The best part is that this can be done without leaving your home, and whenever you have time.​