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There’s Room in Every Budget for Life Insurance


One of the most common reasons people give for not owning a life insurance policy is that it costs too much money. How can you afford yet another monthly or yearly payment when you’re already struggling to pay your bills?

Well, this is precisely why one should own a life insurance policy, so that they can ensure the people they support are taken care of, if and when they die. After all, if your household finds that money is often tight and paying for essentials like the mortgage and car payments can be a struggle, how would your loved ones cope if their source of financial support–you–was gone?

When budgets are tight, it can be difficult to imagine where the money would come from for a life insurance policy. The good news is that term life insurance can be purchased at a price that anyone can fit into there budget.

Keys to making life insurance affordable:

1. Buy when your young

2. Maintain a healthy life style

3. Keep your driving record clean

 Term is the best bet to keep the cost down:

Term life insurance certainly has risen in popularity in recent years, as it’s more accessible to a much larger percentage of the population. What’s more is that term life is also the most adaptable life insurance policy available. Unlike permanent life insurance policies, like universal or whole life, term life can be purchased in the blocks of time or number of years for which you feel you will need life insurance. So, for instance, if you would like to ensure that your children are well looked after until they’re of the age where they can take care of themselves, you may decide that a 20 year term will be more than adequate.

The reason permanent policies can be so much more expensive is because you’re essentially paying for a lifetime’s worth of coverage when sometimes you only need coverage for a certain period of time. As well a permanent policy will build up a cash value and as the cash value grows you will accumulate a sizable cash value account.

 Things you could remove from your budget to buy life insurance:

1. Daily Latte

2. A Monthly Pizza

3. Cable

4. Fast Food

Let’s take a look at some rates to see just how affordable term life insurance can be.

The rates below are based on a non smoker who is in the best physical condition. You must have a good driving record to qualify for these rates as well. As you can see in the chart, you should be able to find room in a budget for life insurance. You might have to give up a few of the things you like but it will be well worth the sacrifice.

life insurance table







How Term Insurance Works:

The way a term life policy works is that if you die within the term you chose, the death benefit will be paid out to your beneficiaries. If, however, you don’t die and you survive your term, you can renew your policy, thus extending your coverage.

What will make your term life insurance even cheaper is applying for a policy when you’re relatively young and, more importantly, healthy. Insurance providers give rates based on an assessment of your level of risk; the healthier you are, the cheaper your insurance rates will be.

If life insurance was something you thought you couldn’t afford, find the room in your budget for inexpensive term life insurance. You will be happy you did!

Bio: Brad Cummins is and independent life insurance agent and creator of  TermLife-Insurance.com a website where you can compare term life insurance quote side by side.


About Kim Parr

Kim Parr is a private practice optometrist, freelance writer, and personal financial blogger. You can follow her journey to 20/20 financial vision at Eyes on the Dollar.


  1. I bought a 20-year, $1 million term policy when I was 27 for only $40/month. I plan on buying another policy for much less (maybe 30 years, $250,000) in a few years when I’m in my late 30’s. By that time my net worth should be up higher and all my debt eliminated. Do you see this kind of strategy very often?

    I totally agree with the importance of life insurance, providing for my family is what being the provider is all about!

  2. Life insurance is something that my wife and I are currently looking into. I would love to have high enough coverage where money is the last thing on either of our minds if something ever happened.

  3. A guest on our podcast last week made a great point about insurance: your good health is what buys your policy. If you wait until you don’t feel good, you’ll pay sky-high rates for something you could have scored for much less than you’d expected.

  4. We bought our insurance in our 20’s so it’s dirt cheap. I think we need another policy on Greg at this point and we’ll be looking for one soon.

  5. We both bought our insurance in our mid 20’s and it was so cheap. Having good coverage is something that is all too often overlooked, especially when a family is involved.

  6. We just have a small amount of life insurance right now. We do need to change that though!

  7. Really timely post for me.. we’ve been thinking about purchasing life insurance. We had been putting it off, saying that we’d add it into our budget the next time one of us got a raise – and I did last month. It just feels like one of those tedious, super-grown-up-and-adult things to do! I think that’s why we’ve been shrugging it off and saying “oh we’ll get to that eventually..” But I know that’s the wrong mentality to have! We need to take advantage of a lower rate while we’re still young. Thanks for the timely overview – purchasing life insurance has now done on my to do immediately list 🙂

  8. I often hear people say they cannot afford insurance, but they cannot afford the loss of income either. Buying insurance early make sit much affordable.

  9. We both have life insurance although my wife has had it much longer than me. When we were smoke free for one year our policy cost was 50% cheaper.

  10. I wish I had read an article like this 10 years ago when we purchased my husband term insurance policy. We really didn’t know what we were doing. Now he’s in his 50’s and we need a new policy. I would have gone with a 20 year term had I know how fast 10 years can fly by.

  11. Starting early is always essential to get the best out of this plans. However some people may have been financially educated later in life and have no choice but to buy when they are older. It is never too late though. We may only purchase life insurance up to age 85, this is the age at which life insurance companies no longer sell life insurance to individuals. At age 85, you are considered uninsurable. I wonder if there are any individuals who bought a life insurance at age 60 or 70 let alone 80?

  12. Many years ago, we met with an insurance rep who advised us to buy inexpensive long-term insurance, and then invest so that when the policy expired we would be “self-insured”. He tried very diligently to educate us, but we were young, broke and expecting our first child. Plus, we knew nothing of investing. We also had no family members or friends who were good mentors. Years flew by, and we made all the typical mistakes like: lifestyle inflation, mortgage refinancing for cash out (sigh), credit card debt and car loans. and an inadequate emergency fund.

    Twenty years later, we have seen the error of our ways, but “early retirement” is out of the question. We are definitely not “self-insured”, and we have purchased more term insurance. I hope others will learn from our mistakes. Get insurance and start investing early!

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