With different life insurance coverage options, your life insurance policy can help cover final expenses, pay off debts, and leave a little something behind for your family. While this sounds like a great idea, you may be unsure about the type of policy that’s best for your needs, the cost of premiums, and how to set your budget.
Budgeting for senior life insurance starts by determining how important it is for you to have a policy. Once that’s decided, the next step is to figure out how much coverage you need, which will help determine your costs. Then, you can start shopping around and compare rates to find the best policy for you. And then finally, you can work on getting creative with your budget to make room to purchase life insurance.
Recognize the Importance of Life Insurance for Seniors
Car insurance and health insurance are necessities, so why isn’t life insurance? Car insurance is designed to cover your car in the event of an accident. You pay a deductible, and the insurance company pays the rest, getting you up and running in no time. Health insurance works in much the same way. We recognize the importance of these types of insurance coverage, but for some reason, we think about life insurance differently. When you really understand how significant it is to carry these policies, they take precedence in your budget. Life insurance can be tailored to meet your needs, whether it’s just to cover burial expenses or to protect your loved ones from financial devastation.
Determine the Amount of Coverage You Need
There are many types of life insurance for seniors to explore. Benefits can range from covering end-of-life expenses and paying off debts, to leaving a legacy for your loved ones. If you still have a mortgage or other obligations, you will want to find a policy with enough benefits so your debt doesn’t land on those you leave behind. If you have no outstanding balances, consider obtaining a life insurance policy that covers final expenses. Whatever your needs, you can find a policy that suits your lifestyle and budget.
Shop Around and Compare Rates
Purchasing a life insurance policy doesn’t have to be expensive when you understand the amount of coverage you need. Shopping around and comparing rates is vital to saving money on a policy, and can be done with ease online or over the phone. Be sure to keep track of each quote you acquire to get the best rate with the policy of your choice.
Scale Back on Expenses
Once you determine a life insurance policy is a must for you, it’s time to turn to the budget to see where you can make some room.
Technology has made it easy for us to make purchases on the things we need and want. Unfortunately, it has also made it easy to overspend on unnecessary items. The following are a few items you can consider limiting your spending on, in order to help save money.
- Magazine Subscriptions: According to the US Bureau of Labor Statistics, the cost of magazines and newspapers has increased by $8.49 since 1997. When you think about that cost spread out over months or years, you can see how much more you’re spending when you don’t have to. There are lots of ways to get free subscriptions online without hidden fees. Subscriptions like Diabetic Gourmet and New Lifestyles Directory, to name a few. You can also visit your local library, in person or online,to find magazines and newspapers you can check out at any time.
- Video Streaming Platforms: Chances are you have more than one video streaming platform in addition to cable and local channels. Consider what you’re actually watching and which ones you can nix from the mix. Find one platform that streams the majority of what you need and ditch the rest. If you find that you still need live TV, purchase an antenna and enjoy your local channels free of charge.
- Memberships: Do you have a gym membership but hardly ever go? Consider purchasing one or two pieces of exercise equipment to make the most of your workout instead. Additionally, do you have both a Sam’s Club and a Costco membership? Maybe you prefer to buy your toiletries from one and your produce from the other. To save money, decide which one you use more often and cancel the other membership. The cost of multiple memberships can add up throughout the year and scaling back is a great way to free up funds.
Downsize Your Lifestyle
Becoming an empty nester presents opportunities to downsize. Here are a few ways to free up funds and make more room in your budget for life insurance.
- Dine-in: While it may be tempting to eat out now that you have fewer mouths to feed, the cost of eating at a restaurant adds up quickly. Try choosing one special night a week to eat out instead of making it a recurring instance.
- Have only one vehicle: There are several ways to save money by having only one vehicle. Your auto insurance rates will decrease, your personal property taxes will decrease, and you will save money on gas by carpooling. These savings alone could be enough to cover the cost of a life insurance policy.
- Downsize your home: Even if your house is paid off, having a larger space equates to higher utility bills, yard maintenance, and expensive home repairs. Additionally, the higher the value of your home, the higher your yearly personal property taxes will be. While selling your home can be tough, it may bring the financial freedom you need to do the things you want, like taking vacations, and making room in your budget for an insurance policy.
- Consolidate debt: If you have several loans and credit cards, consider consolidating. Obtaining a low-interest loan to pay off higher-interest credit cards could save you hundreds. Likewise, refinancing your existing loans can do the same. Talk to your bank to see what options are available to you.
Discover How Americo Senior Life Can Help
Life insurance for seniors has never been more affordable with Americo Senior Life. Trusted by families for over 100 years and with an A.M Best rating of A*, a budget-friendly policy is within reach. Call or go online today, and get your free quote now!
*A.M. Best rating for Americo Financial Life and Annuity Insurance Company (Americo), October 2021. Americo Financial Life and Annuity Insurance Company has a financial strength rating of A (Excellent, 3rd out of 15 rating categories.) A.M. Best’s rating is assigned after a comprehensive quantitative and qualitative evaluation of a company’s balance sheet strength, operating performance, and business profile. A.M. Best uses a scale of 15 ratings, ranging from “A++” to “F.”