Review Life Insurance During Tough Financial Times
Most people will experience financial hardship at some point in their life and when you start to feel the crunch you may start reviewing your monthly bills and begin a cutting back process. While this is wise in many cases, there are circumstances where you may want to keep paying some bills just to keep your financial strength in tact.
Since each individual has their own unique situation, it's important to ensure you are consulting with a professional before making any big decisions about your bills. You may want to think twice about cutting back on insurance products since financial tough times might be when you need insurance the most. The article on Business.FinancialPost.com, "Hard Times Trigger Changes in Insurance Choices" by Garry Marr, talks about how economic downturns might be exactly when you need insurance the most.
Clay Gillespie, a certified financial planner with Rogers Group Financial says when people feel threatened financially, certain types of insurance like life insurance and disability, may seem more appealing. Other types of insurance may be cut such as car insurance and property insurance since they are seen as unhelpful if you were to lose your job or pass away. Tough times lead people to plan ahead more and one of the issues that comes up more often is their mortality. Triggers, such as a close one dying, can get people thinking about how prepared they really are for such a situation.
Unfortunately, if you are short on cashflow you will have to start choosing between important products such as whole life insurance or critical illness insurance. You have to work with your family and professional to help you sort out priorities and understand which products are really worth your precious pennies. Canceling policies can have unfortunate side effects since it can be challenging to qualify for an affordable policy down the road. It's important decision to make, especially when you are experiencing a stretched wallet.