Life Insurance when you can’t afford it
Are you feeling the pinch of trying to keep up with bills on a tight budget and think you can’t afford things like life insurance? We totally get it. Life insurance might seem like a luxury you just can’t afford when you’re barely scraping by. But, guess what? You absolutely can get life insurance even if you’re on a shoestring budget!
We know it’s tough to imagine splurging on something like life insurance when every penny counts, but trust us, there are ways to make it work without breaking the bank. First, let’s determine whether you actually fall into a category of being ‘low-income’. Being low-income is all about how much your household brings in and how many mouths you have to feed. According to the U.S. Department of Education, if you’re a family of four pulling in around $37,650 a year, you’re in that low-income bracket.
Now, think about this: if you’re the one bringing home the bacon and things are tight, what happens to your loved ones if something were to happen to you? It’s a tough question, but an important one to consider. Will your kids still be able to chase their dreams without worrying about tuition fees? Can your spouse keep a roof over your family’s head? How will everyone cope financially? And let’s be real, will there even be enough cash to give you a proper send-off?
Here’s a kicker: a whopping 83% of folks out there think life insurance is way too pricey. When asked, most folks guessed it costs three times more than it actually does! Take this for example: many people think a healthy 30-year-old would have to fork out about $400 a year for a $250,000 policy over 20 years. The truth? It’s more like $146 for the guys and only $128 for the ladies!
But we get it, life insurance is confusing and can be more than a bit of a head-scratcher. That’s why it’s super important to chat with a broker who knows their stuff. And you should totally check out the list of our experienced brokers.
Here are a few tips for all you budget-savvy folks out there looking for life insurance:
- Start your hunt online. Yep, just like ordering dinner or booking a ride, you can kick off your life insurance search online. But hold your horses! If you’re not sure what type of policy suits you or you’ve got health concerns, it’s best to have a chat with a broker first.
- Team up with a broker. Trust us, comparing different agents can be trickier than finding a needle in a haystack. Life insurance websites might give you rates, but not all of them will guide you through the nitty-gritty details. A broker will be your lifeline through the maze of underwriting and medical exams.
- Don’t stick with your car insurance agent for life insurance. Your car insurance agent might be top-notch at sorting out car troubles, but life insurance? Not so much. They’re likely to only offer rates from their own company, which might not be the best deal for you.
- Stay in tip-top shape. Staying healthy is easier said than done, we know. But even little things like cracking jokes with friends or keeping a positive mindset can make a big difference. Plus, applying while you’re young and healthy will save you cash and give you peace of mind.
- Stick to your budget. There’s no point splashing out on a policy you can’t afford down the line.
- Check out your employer’s coverage. Some workplaces offer group life insurance as a perk. It’s worth looking into since it’s often tied to your job.
See? Life insurance doesn’t have to be a headache, even on a tight budget. We’ve got your back!
When it comes to life insurance, the big question is: what type should you get? Let’s break it down. First off, if you’re unsure about which policy suits you best or you’re new to the whole life insurance game, don’t go it alone. Seriously, get yourself a broker to walk you through the options. Here is a short overview for the two main types of life insurance and what they are good for –
Term Insurance: This is your go-to for affordability. You pay for coverage for a set period, like 10, 15, 20, or 30 years, with fixed premiums and benefits. Simple, no-frills coverage ideal for mortgage protection or income replacement. Best for those under 50 and in decent health.
Final Expense: Looking to cover just the essentials? Final expense insurance has you covered for things like medical bills, burial, and funeral costs. It’s for folks over 50, not in the best health, and needing lifelong coverage. Typically offers a smaller death benefit, usually up to $25,000.
So there you have it, a quick rundown to point you in the right direction. Remember, don’t go it alone—get that broker onboard! But if you want to do a bit of research for yourself before speaking with a broker, check out our detailed blog that discusses all the nitty-gritty details and compares prices.
The disparity in life insurance ownership between higher-income and lower-income Americans is concerning. While nearly half of all Americans lack coverage, ownership rates dramatically increase with income level. This discrepancy is primarily fueled by a sales model that favors larger policies, catering to wealthier clientele. At Octans, we aim to bridge this gap by focusing on serving low-income communities. We understand the systemic barriers these communities face and are committed to providing accessible insurance options. Our mission is rooted in responsibility and a desire to create a more equitable society.
Lower-income communities often face underinsurance because they are not the typical target audience for traditional life insurance sales. Agents, incentivized by commissions, prioritize larger policies that yield higher profits. As a result, those in need of smaller, more affordable policies are overlooked.But at Octans, we pride ourselves on standing out in the insurance industry by focusing on aiding low-income individuals. We thrive on the challenge of discovering policies that align with your budget. While agents certainly appreciate commissions, they value retention even more. They understand that if you cease payments shortly after purchasing a policy, it’s a loss for both parties. Therefore, even if they earn fewer commissions from selling smaller policies, they prioritize your long-term financial stability, ensuring a policy you can sustain.
If you’re ready to explore your options and secure your future, reach out to us by filling this form out. One of our experienced brokers will reach out to you within the next 24 hours in order to guide you towards a policy that fits your needs and budget, ensuring you and your loved ones are protected.
Source:
https://www.effortlessinsurance.com/life-insurance-low-income-family/
https://www.forbes.com/advisor/life-insurance/how-much-is-life-insurance/
https://www.limra.com/en/research/research-abstracts-public/2023/2023-insurance-barometer-study/