We’ll cut to the point, and save you some scrolling: the answer, of course, is “Yes.”
But why that answer is yes is a bit more complicated. And worthy of some investigation.
After all, when gas prices, grocery prices and the cost of just about everything seems to be going up, why in our right minds would be adding a monthly premium on top of that? Why not wait?
Let’s take a look at the reasoning, here, and you can write us a strongly worded letter if you disagree.
What is a recession? A recession is defined as a significant decline in economic activity that lasts for months or sometimes even years. Depending on your age, you’ve likely witnessed several of them in your lifetime already. On the flip side, you’ve also been around during periods of economic expansion, which occur when the economy grows for two or more consecutive quarters.
Great. So now we’re on the same page about what is or isn’t a recession. (Since it seems that even the experts and the politicians tend to disagree.) And as scary as a recession may sound, they’re ultimately considered an unavoidable part of the business cycle. The economy expands and retracts. It is a regular cadence that occurs in economies all around the world, due to national and international market performance.
Obviously we tend to notice it more when the economy takes a downturn. And we really notice it when our household budget is pushed to the limit, due to no fault of our own.
When cutting costs during a recession, don’t cut your life insurance.
The grocery bill has gone up 20%. Would you, in response, cancel your car insurance?
No, of course you wouldn’t. Because you know, deep down, that by removing an economic safety net in a moment of economic uncertainty is a bad move.
Would it help balance this month’s budget? Perhaps. But what happens if you get in a fender bender? Wouldn’t that be so much worse than having to somehow pay the insurance premium?
A temporary economic downturn is the worst possible time to discontinue protecting the ones you love. If the unexpected were to happen, would they be able to afford to maintain their current lifestyle without the assistance of your life insurance policy? Would they be able to bear the financial burden of your final arrangements amid increasing costs and fees?
In a moment where peace of mind is hard fought for, is sacrificing it really a smart choice?
Let’s face it—it’s easy to spend $100 or more each month stopping by the drive-thru for coffee or fast food. (We hate it, too! But cuts must be made.)
Maybe you never considered life insurance because you think it comes with a high price tag. Most people believe it will cost 2 to 3 times more than it really does when, in fact, life insurance is actually pretty affordable.
Fun fact #1. According to the 2022 Insurance Barometer Study, 80% of people overestimate the cost of life insurance. Don’t let this common misconception keep you from getting the coverage you need.
Paying a premium for peace of mind.
Life insurance is about knowing that your loved ones will be provided for if something happens to you. How does it feel having the confidence that no matter what happens to you, those who mean the most will have financial security? These kinds of considerations are the most important ones to keep in mind. They allow you to sleep peacefully at night, knowing full well that you’ve done everything you can to help ensure the quality of life for those you love.
Term insurance versus permanent insurance.
If there’s one thing that the past few years have taught us, it’s to expect the unexpected. With that in mind, now is a perfect time to consider a life insurance purchase if you don’t yet have coverage.
Your life insurance options depend on both your budget and your needs. If you’re only looking to cover your final expenses, your cost would likely be lower because your needs are different than those of someone who needs to make provisions for their spouse’s and children’s futures.
Various insurance carriers offer many different types of life insurance products to choose from, but most life insurance can be defined as either term or permanent.
Term life insurance protects you for a specific period of time. If you pass away during that time, your spouse or other beneficiary will receive a specified amount of money as a death benefit.
Permanent life insurance has no specified term since it is designed to cover you for the rest of your life. Though typically more expensive, permanent life insurance has affordable options that not only provide a death benefit but can also provide cash value, unlike term life insurance.
Last, but not least.
It’s understandable that rising prices can make you take a second look at your expenses. But here’s a tip for anyone looking maintain a more consistent budget.
Look into something called “level-premium insurance”:
Level-premium insurance is a type of term or permanent life insurance where the premium remains the same over the entire life of the policy. If you want to lock in a rate for the length of your contract, this type of policy is worth your consideration. With this type of coverage, premiums will never go up. They are guaranteed to remain the same throughout the length of your contract.
Sounds pretty dang good, doesn’t it?
The thing is: this is just one of many life insurance options available. An agent can help you find the policy that’s the best fit for you, and maybe even talk about types of policies that you’ve never even heard of. That’s why it’s always best to talk to an expert, in these types of situations.
To speak with an insurance professional, head over to our contact page, or fill out the form below: