A recent report by the Center for Economic Policy and Research showed an alarming trend amongst life insurance holders in the face of the current recession. There has been a steady stream of families that have opted to drop their life insurance coverage to ease their cash flow. As of the date of the report 4.2 million people have already lost their health insurance and life insurance policies. It is estimated that by the time this recession has run its course, the number of people who will lose their health and life insurance policies will at the very least double. Below are a few pointers and things to remember before you fall into the “uninsured” group.
The first thing to be weary off is if you are in a group policy arrangement with your employer. This is not the safest thing in this economic climate. You should not rely on anything that your employer provides to you especially you insurance coverage that is linked to your job. There is a higher possibility of recessionary redundancies and you must make arrangements to address this possibility should it happen to you. If you lose your job you don’t want to lose your life insurance as well. If you wait until your job related life insurance policy runs out it becomes much harder to get a personal life insurance policy than if you have one already and switch over. Get a life insurance quote from your local insurance provider while you still have your job related life insurance policy
There is also something to be said about joint life insurance policies. On the surface of things a joint life insurance program for you and your spouse may seem like a good idea as the price reductions are considerable compared to having just one policy for each person. The problem is that you will only receive a death benefit for one person, not two as with the independent life insurance quotes for each person. Once your spouse dies you are effectively left without life insurance. If you attempt to buy it, you will be charged an exorbitant amount. Get separate life insurance coverage for you and your spouse and not only have one death benefit pay-out.
Another area that people can save on is if they have a critical illness policy that runs concurrently with their life insurance policy. Most people don’t know that they can actually make a saving if they combine both of these policies together with the same insurer. The reason for this is two fold. Firstly, critical illness policies and life insurance policies are related and as such have some overlapping coverage which is not efficient for the client. If you have both insurance policies running then it makes sense for you to talk to your insurance provider and see if they can get a quote for both life insurance and critical cover combined under the same product to save you some money. The second reason is that you get a bulk discount from many insurers too by having more insurance products with them.
It is understandable people would think of laying off their life insurance payments for other seemingly more important expenses that have to be settled. This is because of the priority of life insurance compared to their other things is unbalanced in their minds. This is however a very dire mistake. Life insurance coverage offers some of the best returns for your death benefit when compared to any normal investment. People have to really reorganize their payment priorities and start to rank life insurance payments higher. This is especially true in the current recessionary times where we are forced to cut back.
Overall, there are a few things that you can do to save on the costs of your life insurance policy however it is more important to understand and appreciate the importance of life insurance even in the times of a recession. If you have people depending on you then it would at best be irresponsible to leave the family that depends on you on the line if you should pass away. Never forget that.
Recent Comments