Amanda's Note: This was provided by an online contact. 

Life insurance isn’t a fun topic to discuss, especially when budgeting. You watch money disappear each month on a (hope not) chance it may get used. But there are ways to find highly recommended life insurance while not breaking the bank.

Here are five tips to help you make the best choice when it comes to purchasing life insurance that won’t make you go broke.

Determine what you need

Don’t think of life insurance as a big payout for your family if you were to pass away suddenly. It’s not a lottery; it’s your life. So by what is needed, not what you hope to get.

If you are the primary source of income for your family, have a business or have dependent children, your life insurance policy will be bigger. This results in higher premiums to pay. But if you have no kids, single, your spouse brings in the most money, or maybe you have a substantial cushion in place, you won’t necessarily need as big of policy.

Look at your options closely

There are many options available for life insurance, so don’t buy the first one given to you. The two main options are term life insurance and permanent life insurance.

If you only want life insurance for a specified period of your life, term policies will be up your alley. Term life insurance typically goes for 20 to 30 year periods in which the insurer will have to decide if they wish to renew the policy or let it expire. You would want to know exactly how much you need right when you buy it.

The other option is a permanent life insurance policy. What makes this plan appealing is that it is coverage over the course of your entire life. Not only that, this policy has a second component that allows you to gain cash with it, almost like a savings account. It allows you to take something called a policy loan against your cash value, or the saved money from premium payments.

Term policies are your cheaper option to go with. They also allow the option to switch to a permanent life insurance if you decide later on.

Do your research

Don’t go into a meeting about purchasing life insurance blind. Educate yourself beforehand on what is available and come prepared with options you want to discuss. Don’t let the person selling insurance convince you on a policy that is beyond what you need.

Shop around for different options. Shop around for different options. Compare policy to policy and company to company. Look for those insurance companies with a high financial strength ratings such as A or better which reflects superior or very strong financial strength, operating performance, ability to meet financial obligations, and more.

Change up your lifestyle

This one’s serious. Life insurance companies won’t want to risk their money if your health is quite feeble. What ends up happening is your monthly premiums will skyrocket. If you have the option to rebuy your insurance policy after a certain amount of time or haven’t gotten it yet, consider what your lifestyle is like.

A person at a healthy weight who doesn’t smoke and rarely drinks will potentially have smaller premiums to pay compared to a heavy smoker who drinks and lives life dangerously.

Revaluate your current budget

If you’re struggling with getting a life insurance policy to fit within your budget, you may want to reconsider your budget altogether.

Life insurance is not something you want to cheap out on. It is protecting you and your family in case of sudden death. So find ways in your current budget to allocate a bit more money towards your life insurance policy.

If anything, make sure the decision you make about your life insurance is an informed decision. It is not one that should be taken lightly. If you haven’t considered life insurance yet, start sooner rather than later, it will help you in the long run.