Term Life Insurance Works in Tough Times
Term Life Insurance Works in Tough Times
We’re in one of the steepest recessions of the last 50 years. Families are making tough decision on what to trim from their budgets and life insurance eventually comes up on the radar. People start to look at the premium they pay for health, life insurance, etc. The whole point of life insurance is that you’re protecting against a future risk. Cancelling the coverage early defeats the purpose. Let’s look at why term life insurance works so well during tough times.
First, let’s take a quick refresher course on why life insurance is so important. It’s easy to look at that monthly premium and say, “Well, I’ve been fine till now…do I really need to keep paying for life insurance?” It’s human nature and especially American nature to put off the future for the now (look at our credit cards and savings rate) but the risk of not having life insurance is too great in relationship to the cost of having affordable term life in place.
At it’s core, life insurance is about replacing income over a long period of time in the event of someone passing away. For a new family, we’re potentially talking about 100′s of thousands of dollars if not millions. In our “without life insurance” article, we address the difficult decisions surviving family members would have to make without this type of protection. It really can throw a family into a tailspin at quite possibly the worst time in their life! It’s bad timing and it’s bad planning. Many of the people we helped sign up for term life insurance recently did so after witnessing the unexpected passing of a friend, co-worker, or family member and the result it had on the family. Nothing drives people to action quicker than seeing what ACTUALLY happens in such a situation. Unfortunately,