I Can't Afford Life Insurance!
This is the most common message I get from the people I visit with in regard to life insurance.
To some degree, it is just a reflex, and a way to get rid of me when I introduce myself. In other cases, it is a real fear and reason people simply do not wish to visit with me about the subject.
The economy, as of this writing (August 2020) isn't exactly favorable to look at taking on additional expenses right now, is it?
However, it is also not as costly as most people think. The public over-estimates the cost of life insurance by 3 times!!! according to LIMRA, the worldwide research body for financial services.
Keep reading, because if you have a legitimate need for life insurance, the following steps below are the same one's that I use to help clients first find out how much coverage they need, followed by how they can go about making that coverage affordable.
A trusted advisor will determine via a basic fact finding consultation, your current financial situation and how much life insurance you need. This includes factors such as your age, health, occupation, spousal information and dependents along with a basic picture of what is most important to you and your life.
After determining how much life coverage you require, a summary of plan options will be given along with quotes (from a variety of companies) along with any ideas to minimize taxes, expenses and future financial goals.
The next step is to find a coverage amount to "fit" for your budget, and a path for applying for that coverage. Open discussion needs to happen in order to find the fit for you. It is at this time we take a look at ways to fit this in your budget, which can take some time and creativity.
Depending on the life insurance carrier, after we find a plan that works and fits the budget, we take an application for insurance and move ahead to get coverage put into place. Most of the companies we work with do NOT require a medical exam. Some policies can be issued on the spot.
Here are some strategies we have used to help people find the money in their budget for life insurance:
Increasing deductibles on auto and homeowners insurance.
Consolidating credit card debt.
Eliminating employer based life insurance coverage.
Changing buying habits to reduce overall costs, ie. Costco or warehouse stores.
Reviewing existing life insurance coverage to compare rates and possible savings or consolidation.
And many more...
To sum up, if you have a need for life insurance coverage, but believe that you cannot afford it, please reach out to me for a free consultation for an honest look at what a policy costs, and how you can find a way to afford it.