Life insurance is essential at every point in your life. When your loved ones rely on your financial support, having a plan in place is even more critical during difficult times. When the marketplace is in free fall, the economical value of life insurance is undeniable. If the global pandemic has taught us nothing else, it is to expect the unexpected.
Should I Buy Life Insurance During A Global Pandemic?
The COVID-19 experience has made us all more aware of how fragile our systems can be. With an economy in recession and many people out of work, the risk of leaving your family without financial support has become very real. Understanding the economics of life insurance is even more important when a pandemic could cause sudden death. Making that monthly premium payment no matter your financial circumstances will provide immediate support to your family for housing and expenses in the event of your loss.
Is Life Insurance Recession-Proof?
When weighing the options for investing your money during financial hardship, it is worth examining life insurance economics versus investing in the market. There are two types of life insurance, term and whole or permanent life insurance. Your best choice is likely term life insurance for full coverage during a pandemic. There are some limits, like excessive travel, but your policy is considered pandemic proof.
Term life is a set payment for a set number of years, so your money is not tied to the market or a failing economy. A term policy is usually from ten to thirty years of investment to cover your growing family into the future. Your insurance agent will be able to explain all of your risks and advantages in choosing to invest in life insurance. In short, the financial obligation is worth the financial stress no matter the state of the world.
How Much Life Insurance Coverage Do You Need?
Calculating the expense of a life insurance policy requires a bit of research and information gathering. According to the Insurance Information Institute, you should consider these three categories:
- Income needs
- Final Expenses
The relatively low cost of monthly premium payments will make sense compared to the potential economic turmoil your family would experience from your sudden death. Your Independent Insurance Associates agent will gladly help you determine the best policy based on these factors and your wishes for providing for your loved ones.
Living through a global pandemic has been challenging for everyone. The stress on the economy and the sudden awareness of how fragile our lives can be has been quite the wake-up call. All of us have had to reflect on who and what is most important in our lives. Your local Independent Insurance Associates have remained steadfast in supporting individuals and businesses through the ups and downs of social distancing and economic recession.
Feel free to contact us to schedule an appointment to discuss or review your life insurance needs. Being prepared for the future helps give you peace of mind, especially in these uncommon times.