Is the economy is taking a toll on your pocketbook? Gas, groceries, healthcare, and just about everything else has gone up in price.  Often times, that life insurance bill comes in and it’s the last thing on your list to pay. Or, it’s not paid at all because it’s just no longer affordable.

If you have a life insurance policy and you feel you can no longer afford it, before you cancel it, carefully consider ALL your options. There may be ways to get your term life insurance rates down without losing the coverage you need.  Keep in mind that if you were to die today without life insurance, the loss of your income would have an even greater affect on your family with the current state of the economy.

Here are some tips to help reduce the economic burden and create affordable life insurance plan that fits within a tight budget:

1. Switch to modal payments – Modal payments are an easy and quick fix. They do a good job of lessening the financial burden of an annual insurance bill and help spread the payment across a period of one year.  If you’re paying annually, contact your insurance agent and ask to switch to a semi-annual, quarterly or monthly payment
2. Reduce the term length - In some cases, it makes sense to replace your policy with a shorter term.  Generally the longer the term, the better, but in times like these, a shorter term with a lower premium is certainly better than dropping coverage altogether!  By reducing the term, you could lower your payment while keeping the same amount of death benefit protection. However, before canceling an existing policy, be sure you qualify for a new one and your health hasn’t changed.
3. Reduce the death benefit – Choosing a lower death benefit is another way to lower your costs.  While I don’t recommend this as a great solution, this too, is a whole lot better than canceling the coverage completely. However if you do choose this option, once your financial situation improves, reapply for additional coverage immediately to ensure your family is adequately protected.