Tuesday, September 8, 2015

Ways to Cover the Cost of Life Insurance

Many people may they think they have a good understanding of life insurance. Often, this may not be the case. When asked how much they thought life insurance would cost for a year, 80 percent of those who answered a recent survey overestimated the cost of term insurance1 by more than twice what it really costs. The primary reason many people hesitate to purchase life insurance is the belief that it’s too expensive. That’s unfortunate considering that life insurance can help protect the financial future of your family should something happen to you. When you look at the numbers, the cost of coverage should not be a barrier for many people.

For example, a healthy 30-year-old man can get $250,000 of term coverage from Farmers New World Life Insurance Company for $22.68 a month2. With the average monthly cost of $613 for a cell phone, or $644 for a cable subscription, life insurance is a relative bargain. As you can see, life insurance can be affordable.

Here are some money-saving ideas to consider that can benefit many areas of your life in addition to helping cover the cost of life insurance:

Create a budget. Track your expenses: knowing where your money is going may help you identify areas where you can easily reduce your spending. There are many free money management tools and apps that can assist you with this.

Quit smoking. It benefits your health, and a pack-a-day smoker can save over $2,000 per year based on the average cost of a pack of cigarettes5. Non-smokers can also expect lower life insurance rates – all other factors being equal – than smokers.

Bring your lunch to work. By not spending just $5 a day you are looking at saving about $1,200 a year. You don’t have to bring your lunch every day: even bringing your lunch every other day can result in savings that can help cover the cost of a life insurance policy, and possibly even more.

Eat out one less time per month. If it costs you about $30 on average each time you go out, reducing this number by once a month will allow you to save over $300 a year.

Bring coffee from home.  Do you spend $3 a day on coffee during the work week? If so, this can add up to $720 per year. Cutting this number in half can result in significant savings.

Save your loose change. It may not sound like much, but setting aside fifty cents a day over the course of a year will allow you to save more than $180.

Take advantage of all company benefits and discounts. Your company may offer corporate discounts on gym memberships, cell-phone data plans, hotels, concerts, etc. that can help you save.

Organize your closet. This can have a number of advantages. You can save time in the long run knowing where everything is located, and you may find forgotten items, reducing the need to purchase new ones. Consider consignment for items you no longer want to keep.

Research major purchases. Check product reviews, price comparisons, features, and other aspects of any product you are looking to purchase. Wait for sales for additional savings and discounts. A little research and timing can save big $$$ on a purchase.

Start small to save big
Starting with some small steps, you can easily find the money to pay for life insurance. The hardest part of any change is getting started. Once you do, things usually start to fall into place, the process becomes much easier, and you can begin to recognize the positive impact it has on your life.

Life insurance can positively impact your life by providing you comfort in knowing that it will help support your family financially in what may be a distressing and uncertain time. While no one likes to think about a time when they can no longer care for their family, your family’s needs will still be there even if you are not.

Contact me today to discuss your options regarding life insurance and how it can help you and your family. You can reach Farmers Insurance - The Wertzberger Agency by calling 913-383-3276 or by email HERE


1 Data from the 2015 Insurance Barometer Study by Life Happens and LIMRA.
2 Policy form 2000-230 or applicable state variation. Rate is based on a 20-year Farmers Value Term, 30-year-old male, non-nicotine Platinum Elite underwriting class. Electronic Funds Transfer required. Issuance of a policy and rates are subject to underwriting guidelines and approval. Premiums are subject to change after the initial term period.
3 New Street Research, The Wall Street Journal, March 9, 2014
4 Report on Cable Industry Prices, Federal Communications Commission, May 16, 2014
5 http://www.cdc.gov/tobacco/data_statistics/tables/economics/infographics/index.htm
Your Farmers agent may only sell policies in states in which he or she is licensed.
Farmers New World Life Insurance Company is not licensed to sell life insurance, accident and health insurance, or annuities in the state of New York.
Life insurance issued by Farmers New World Life Insurance Company, 3003 77th Ave. SE, Mercer Island, WA 98040.

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