Can I Afford Life Insurance on a Fixed Income?

Do not let a fear of a fixed income keep you from being adequately insured. When it comes to obtaining life insurance, especially on a fixed income, it is something you probably cannot afford to do without. There are several types of life insurance with some being much more affordable than others, generally speaking.

Looking at Term Coverage

Term life insurance is often looked at as the most affordable form of coverage. Premiums are usually quite manageable even if you have health concerns that will affect the price you ultimately pay. Universal life insurance is permanent coverage that may cost a bit more, but here is where careful planning can be of great help.

If you are on a fixed income due to a disability, then choosing term life insurance may be the best type to purchase especially if you are of working age. If anything were to happen to you, the family could have even basic financial means to cover the costs of a funeral and be able to grant your important final wishes. Term life insurance is cheaper the younger an age bracket you fall into.

Still, even if you buy a ten year term policy, and you wish to renew coverage after that term is up, you may fall into an age bracket that makes a difference in price of $7.00. All plans and providers differ but the changes in rates offered to individuals based upon age change nominally over the course of time. There is a bigger difference between the prices a person in their late twenties would pay for term coverage versus a person in their late sixties would pay.

This is why, if you are on a fixed income as an older individual, it may be fortunate if you invested in a permanent policy. A universal life insurance policy purchased at an early stage in your life just may be able to pay its own premiums out of any cash value it has gained. In this way, you can absolutely afford life insurance on a fixed income. It would all come down to planning carefully early on in your adult life.

But, even if you have waited a little longer to get life insurance, it is no cause for thinking you have to do without it because of your limited, fixed income. Think of how much costlier things would be in the wake of your death for your family. Even for those on a fixed income who fall into an age bracket with some health conditions that would make their premium slightly higher, the amount of coverage purchased can contribute to just how affordable you can make a term policy.

How Much Coverage to Carry

The coverage limits have a lot to do, too, with just how affordable you will find life insurance to be even on a fixed income. Just how much would your family or loved ones need to pay for a funeral and living expenses? If the answer is $10,000.00 there are plenty of term plans that can be purchased at about $25.00 a month for people in their sixties.

If you are on a fixed income you have to ask yourself if you carry any credit card debts or balances. If you do carry even a nominal balance it may be possible that credit card bill is about $25.00 per month. You may need to ask yourself if you can manage that payment, you most certainly can believe that you can afford life insurance on a fixed income. Remember, it can help prevent financial woes for your loved ones after your death.

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