How do I save money on life insurance? Why do I need life insurance if I don’t work outside the home?
How much coverage do I need? Many women and
men are unprotected by life coverage. In fact, death isn’t something
we like to think about, so some people avoid the subject.
Life insurance is to protect our families and children. It’s an important part of financial planning that cannot be ignored. Here are some common questions and answers to help you understand and save money on life insurance.
1. Why do I need life
insurance if I don’t work outside the home?
Everyone needs to have life insurance coverage. If you work at home, imagine the cost of someone else doing what you do. If something were to happen to you, childcare alone would cost thousands of dollars a year. You would want to make that if something happened to you that your children could have high-quality care or your husband could afford to stay home and care for them for awhile. A stay-at-home mom is estimated to be worth a salary of well over $100,000 a year for all the responsibilities you do.
2. How much coverage do I need?
This depends on a variety of factors such as: burial expenses ($8,000 average), number of years your income will need to be replaced, how much will your family need each year to replace your income, and college expenses for your children. The average working mom with a salary of $30-40K and 2 young children would need approximately $500,000 in life insurance. Better to have too much coverage than too little.
3. What kinds of insurance are available?
This is where you will want to do more in-depth research or talk to an agent
for free. You can get whole life insurance (more expensive, but covers your
whole life) or term insurance (for a 20-30 year term). If you don’t like
doctor’s exams, there are policies available with no medical exams, and there
are even policies where you can get your money back that you put into the
policy at the end of the term.
4. How can I save money on life insurance?
First, you can get cheaper insurance by being a non-smoker in good health. Premiums for smokers are around three times as high as those for non-smokers. Secondly, buying insurance at a younger age is less expensive. Some plans even allow you to lock in your low premiums as you get older. Third, term life is usually cheaper than whole life coverage.
Finally the most important thing is to be sure you talk to someone about your questions and get coverage now if you do not have it.
Saving money on life insurance is something you can do easily—and a gift of security for your family, particularly your children. Don’t put off this important step to financial security.