The debate of whether or not a recession is imminent in the U.S. economy is heating up. Some say it’s here–some say we’ll weather the storm. Typically, when we experience a recession people have no choice but to evaluate their budget, cut expenses, and simply survive on less. It’s also a good time to make strategic investments.
For one–life insurance. Facing economic hard times brings renewed interest in securing your financial future. As over half of the workforce worries about losing their job, a term life insurance policy may be a good financial decision, should we enter into a recession.
In this article, we’ll discuss exactly why life insurance is beneficial and highlight why, even amid financial instability, you can safely secure your loved ones with a life insurance policy.
Why Life Insurance is Necessary for Uncertainty
With rising gas, groceries, and all-around cost of living, people are also worried about job security. It’s estimated that when COVID 19 first hit, 7.7 million people faced job loss. The unemployment rate has since improved, but it’s understandable how the fear lingers.
This is where life insurance can serve as a way to protect those you love and your investments. A term life policy protects your beneficiaries from financial burden regarding funeral expenses, debts, or the loss of your income should something happen to you.
Life insurance policies don’t come in a one size fits all option. Different policies offer different advantages. Suppose you do experience financial hard times during a recession. In that case, some insurance policies can help you take out a large sum of money instead of using credit cards to cover the income gap.
Additionally, many people worry about retirement investments as the stock market remains volatile. A whole life insurance policy can help you cover the gap of what is lost on the market while remaining protected against an unstable economy.
Term Life Insurance is Easy and Affordable
Life insurance can still be affordable while carrying heavy protection. Term life insurance is a policy that can cover up to $500,000. The term aspect refers to how many years this policy will remain in place. Term policies can be taken out for 10 to 30 years.
One emphasized benefit of a term life insurance policy is that they’re a very affordable option. A healthy young adult can get premium coverage for about $30 a month. The rate stays the same, making it easy to budget into your monthly expenses. Other benefits of a term life insurance policy are:
- Easy to Understand
- Cost Effective Protection
- Flexible Terms
- Guaranteed Payout
- Fixed Monthly Cost
Final Thoughts on Life Insurance During a Recession
There’s still a mixed review on whether we are headed for a recession or just facing some turbulent waters. We’re all experiencing the cost of inflation and doing our best to budget. You don’t have to compromise on protecting your loved ones, though. Life insurance during a recession is not only beneficial but also affordable and not something to trim away when balancing your books. Contact an agent at PHP Agency to learn more about your life insurance options and take one step towards recession-proofing your financial future.