When a recession hits, the last thing on people’s minds is adding a monthly expense to their bottom line. In fact, most people try to figure out how to cut expenses instead of adding to them. Therefore, adding a life insurance policy to your budget may seem like an easy expense to avoid, but did you know that this type of policy can be a literal lifesaver if you and your family find yourselves under a financial strain?
According to our partners at Frankenmuth Insurance, there are many benefits to having a life insurance policy, even during poor economic times.
1. It allows you to support your family: Frankenmuth states that four in 10 households are not financially able to meet all of their expenses without a life insurance policy. If you or your spouse passes away, will you be able to meet the daily or future living expenses? Life insurance can help you cover day-to-day expenses and even pay for your child’s future education, like college tuition.
2. You won’t leave your family in debt: Life insurance will help you pay any outstanding debts. If you owe a lot or have credit cards when you pass away, your life insurance policy will help your loved ones pay off your debt. Your family will also be able to continue paying the mortgage with life insurance benefits.
3. Get help now paying chronic illness costs: If you have a terminal or a chronic illness, you can potentially get help now while you’re still living under an accelerated death policy rider which will let you receive a portion of your death benefits to help pay expenses. You have to be incapacitated and unable to perform more than two daily activities without substantial help.
4. It will help sustain your business: If you are a partner in a business, a life insurance policy will help your business carry on should something happen to you.
5. It’s tax-free: These payouts are not considered income, so your family won’t have to pay taxes on the monies they receive.
We know recession and inflation can place an undue burden on your household expenses. Even though you may not want to add another monthly payment, we highly recommend that you act now to protect your loved ones and in the future by exploring a life insurance policy. A Risk Consultant from our Life/Health Team can help you determine which policy is right for you.