Not all life insurance premiums increase over time. For example, whole life insurance has level premiums for as long as the policy lasts. Although these premiums might be higher than term life policies, you can expect them to stay the same. Term life premiums can also remain level, but they will increase at the end of the term if the policyholder chooses to reapply for coverage.
If you are thinking about life insurance, you should think about your ability to afford it in the long run. That means if you’re thinking about whole life insurance, consider mapping out your finances to project how well higher – but stable – premiums fit into your life.
Maybe you only want life insurance as a backup for your family until you pay off your home or your kids get out of college. In that case, consider how long you want to have term life insurance and what it could cost if you decide to reapply for coverage.
What Should I Do If I Can’t Afford My Life Insurance?
If your life insurance premiums are unaffordable, you may have a few options available to you.
The first option is finding a cheaper policy. This might result in weaker death benefits, but something is better than nothing – especially if it means switching from a whole life insurance policy to a term life insurance policy.
A second possible option is selling your life insurance policy for cash. This isn’t available in all situations, but sometimes a life insurance policy has a cash value. If you decide to pursue a life settlement, you’ll get cash during your lifetime but lose your life coverage.
The least secure option is dropping your policy because premiums for new policies naturally increase with age and diagnoses. Getting a life insurance policy is like getting your foot in a closing door – don’t pull your foot out without discussing your needs with an insurance specialist! Dropping your policy can save you money in the short run, but it can cost your family the value of your death benefit in the future.
Our Insurance Specialists Can Help
Insurance Specialists, Inc. are here to help you make sense of life insurance. This product can be just what you and your loved ones need to feel better about the future. If you want to protect your home, your children’s education, or ensure your spouse can thrive in your absence, getting life insurance can offer the security you need.
For more information about searching for the policy that’s right for you, contact Insurance Specialists, Inc. online.