• Friday, May 24, 2024
businessday logo

BusinessDay

When to increase the value of your insurance

businessday-icon

When tough economic times come, many households find ways to cut expenses. Salary cuts and job losses are among the many reasons why expenses need cut, but when the question to cut life insurance arises you may want to think twice before you choose to cancel your life insurance policy.

Just know that though times are never ending, meaning that rather than reducing your risk protection measures that will help you in the long run, it is better increased.

According to personal finance experts, rather than reduce your insurance, increase its benefits and be rest assured you have something to fall back.

Tough Times May Equate to a Greater Life Insurance Need

In tough financial times is it quite the opposite when it comes to considering canceling life insurance. Instead, when a financial crisis hits it is most likely the time to add to your life insurance benefit amount or purchase a policy if you don’t already have one.

Your Dependents Need Financial Assistance Even More

Think about it. You lose your job and then you lose your group life policy… don’t you wish you would have found another one before the loss? Also, the economy is in the dumps and you pass away so your dependents need even more financial assistance than you estimated because of the tougher times. There are many scenarios as to why you need your life insurance more than ever so here are some points to remember about handling your life insurance in tough economical times:

  Don’t Cancel Your Life Insurance: This is the first mistake many make when trying to cut costs. Often with all the bills to pay it is easy to think that you don’t need life insurance right now. But if you are having such a tough time now paying for your expenses, then think about how tough it will be for your survivors if you were not there? Life insurance may just be needed more than ever when finances are tight. One thing to consider if you just can’t make your payments is term life insurance. If you don’t already have a term policy then consider switching to one since the premiums are much cheaper than a whole life insurance policy.

Add More With Term Life Insurance:

Again, term life insurance is very inexpensive when compared to other life insurance choices. And, in tough times many have possibly lost savings or possessions that they had planned on passing on to their survivors in addition to their current life insurance. This is why it is important in tough times to recalculate your life insurance needs and if you find that you indeed need to add to your life insurance benefit amount, the least costly way to do that would be to purchase an additional term life insurance policy.

Look for Individual Life Insurance: Great, you have a job and you have group insurance through your employer. Sounds like you are set! Wait a minute… what would you do if you lost your job? Yes, you will most likely lose your group life insurance coverage. So, if you are concerned that there may be cuts in the future of your company or you just don’t want to worry about having a time when you are not covered, then now is the time to search for a term life insurance policy. It is portable and the younger and healthier you are when you get it then the cheaper the premiums will be.

If You Have Poor Health Now is the Time to Buy!

If you currently have a job with a group life insurance policy and you are in poor health, then now is the time to up your life insurance benefit amount. If you do lose your job, then you usually can convert your policy to an individual policy without an additional medical exam. It may cost more to waive the medical exam but it is worth the alternative of trying to find an individual life insurance policy with poor health, which would either be impossible or way to expensive.

MODESTUS ANAESORONYE