Why Life Insurance Is (Even) More Essential During a Recession

July 23, 2020 11:32 newlambertagency

People often think that they should wait for the right time to purchase term life insurance or any other type of insurance. But what if the time is never right for you!

We always set a benchmark for our life – a stable job, marriage, or a promotion. But life waits for no one. There is never a right time when it comes to buying an insurance plan. The economy is always fluctuating, people are losing their jobs – at such an indecisive time it’s better to be prepared rather than waiting for a day that may never come.

You need to consider all the options to harness a safety net for you and for your family’s financial security and what’s a better option than taking up an insurance policy during a recession.

Why buy life insurance?

Apart from the obvious financial security, an insurance policy can help you transfer your savings from generation to generation and safeguard your assets whatever maybe the financial conditions.

An affordable term life insurance policy is a terrific option for those looking for the highest level of coverage possible for the lowest cost, for a specific amount of time. Some financial representatives suggest that you will no longer need life insurance when you are older.

Let’s examine a few of the facts about why and who needs life insurance.

Life insurance can help your family keep their home

Whether you’re paying rent or paying a mortgage, a term life insurance policy can help your family continue to make those payments after you’re gone.  This is crucial if you’re the primary earner in your house. Such kind of blanket protection would play a key role at the time of a recession as the chances of a family member losing their job is likely high which could, in turn, affect the overall household income.

Life insurance can help pay off debts

Recession leads to a lot of debt and if you somehow lose your job, you might find yourself turning to credit cards to cover everyday expenses — and, like many Americans, you might end up in a little bit of credit card debt.

A good insurance policy can help your family cover the outstanding debts (if any) if something were to happen to you. For instance, if you shared a credit card with your spouse, the proceeds from a life insurance policy can help you clear any outstanding debts after you die.

Life insurance keeps you prepared

If the recent pandemic has taught us anything it’s that the economy or the stock market isn’t the only unpredictable thing. You are never really prepared for every possible thing as it’s difficult to anticipate how the world will be in the next 6 months. Will we ever go back to the old normal? Will offices be reopened? Will the job opportunities improve after the dust settles?

The point is, the next few years might turn out to be nothing like we anticipated but that doesn’t mean we shouldn’t be prepared. An affordable term life insurance policy can provide you with much-needed stability even at difficult times. Determine how much coverage you might need and what it will cost using a life insurance calculator.

You just need to remember that you’re doing this for your family’s financial security and insurance policy just might be the key to rid you of any worries you might have about the future.