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When Is Affordable Life Insurance Truly Affordable?

Whether we are talking about ‘affordable’ in terms of affordable life insurance, affordable home mortgages or taking an inexpensive vacation, the term itself can have a significantly different meaning to each of us in different situations. Most of us want to live in a world where the things we want and need are affordable. The word has become somewhat of an advertising gimmick, yet we really don’t have a problem with it, because it does after all define a characteristic we’re looking for. What an affordable life insurance policy means in your particular situation relies on a number of factors. Consider the following:

There are several factors that go into defining an affordable life insurance policy, a few of which are described here:

  • Type Of Life Insurance – The extent to which a life insurance policy is affordable depends upon the type of policy we are talking about. You can take out a policy for term life, universal life, whole life, or variable life, or a policy having some other name which probably means the same as one of the most common types mentioned above. If we can agree that affordable means something that fits within our budget, then it’s fair to say that one type of life insurance can often be much more affordable than another type, while providing similar coverage. When you go shopping for affordable life insurance then, it’s not just a matter of finding which company can give you the cheapest quote. It also depends on the type of life insurance policy you choose and how much the coverage will meet your needs.
  • Lifestyle Matters– If you truly want an affordable life insurance policy you’ll probably be best off seeking a policy that’s underwritten, meaning the insurance company will want to know a lot about you, and you’ll have many questions to answer. If, for instance, you have a good job in an office, are in good health, get plenty of exercise, don’t smoke, and your favorite pastime is fly fishing, you will be able to get a much less expensive life insurance policy than if you are a professional bull rider, a chain smoker, and have survived numerous health problems. Lifestyle matters.
  • Term Insurance – Term insurance can often be most affordable option if you don’t feel you need life insurance for more than 20 years or so. The older you get, the higher the premiums, but many people reach a stage in their life when having a life insurance policy no longer makes sense.
  • Limited Coverage – This is often the most affordable type of life insurance, simply because the payout is limited. A $50,000 policy may serve just as well as a $1 million policy would. People often choose this type of policy to give a surviving spouse enough money to last for a year or two, perhaps long enough to find another spouse or make a better income.

There are more options of course. Feel free to contact us for your life insurance needs or questions. Hitting our “Get a Quote Button” can get you started, and there’s absolutely no obligation to proceed further.