How to Pay for Life Insurance—Even if You Think You Can’t Afford It

Life insurance is a critical component in any long-term financial savings plan. It protects your family and safeguards all your careful planning and investment work; it helps ensure that your loved ones are taken care of, even should something tragic and unexpected happen to you.

As such, you might imagine that purchasing life insurance would be fairly standard practice. Sadly, this is not really the case. Many investors decline life insurance, and often for the same reason: They feel as though they simply cannot afford it.

Life Insurance and Affordability

There are a couple of errors with this thinking. First, it’s important to note that life insurance is much more affordable than some people think it is. It’s simply a matter of shopping around a bit and comparing different plans, something that a financial planner can assist you with.

More to the point, though, it may be more accurate to say that you can’t afford not to purchase life insurance. Remember that life insurance safeguards your family future against calamity, and in a very real way is an investment in your family’s ongoing security and stability. For many investors, the level of protection offered far outweighs the cost of the monthly premiums.

Simple Steps to Make Life Insurance More Affordable

The important thing is to be intentional about it. Like your regular contributions to a retirement savings account, life insurance premiums should be line items in your monthly budget. If you need help making room in your budget for life insurance, consider some of the following, small steps:

– Forgo a couple of your weekly Starbucks runs or nights out at the bar, and use what you normally spend on drinks to help fund your family’s financial protection.

– Another way to make some small spending cuts is to review your existing insurance coverage—including auto insurance; take this opportunity to shop around for some potentially better deals.

– Cut the cord on your cable subscription, and instead get your entertainment from much more cost-effective avenues like Hulu, Netflix, or even Redbox.

– If you’re a smoker, use this as an opportunity to kick the habit—opening up your budget and also, more likely than not, lowering your life insurance premiums.

These are just suggestions, meant to show that there are always some small cuts you can make to help you afford something as important as life insurance. To learn more about this important investment, contact one of our advisors at Stonepath Wealth Management today.