The economy is plummeting, some of the companies close down and some employees are laid off. Where will the situation leave thriving insurance firms? Will the lucky ones who have been given the opportunity by their employees to stay still care about buying life insurances? During tough times, it is understandable to give essential needs a first priority. However, it would make more sense that you buy a life annuity during an economic downturn. Why? Below are the reasons.
• You can save through it for emergency situations. -it is not likely that a recession will last for just a week. More often than not, it takes years before the economy improves and before it gets better, it will turn for the worst. When the government does not have enough budgets, the services extended to the people will be insufficient too. It is probable that only a few people will be covered with medical assistance. In the event that you develop a terminal illness and you do not have enough funds for medical bills, chances are your days would be shortened. This is where a life annuity will come in handy.
• A life insurance can function as your "financial parachute." -on tough times, you have a greater need of providing for your future, or in this context, for the future of your family when you breathe your last breath. You have all the more reasons to purchase life annuity if you are the bread earner of your family as surely, they will be defenseless against emotional cost and burial and everyday living expenses. Upon your demise, the flow of income will surely stop.
• It can be a form of protection and security. -this is the reason why insurance firms boom even when there is an economic downturn. Mass layoffs create a little panic among the people. They would seek refuge on life insurances. It provides them a sense of security from the deflation and inflation. The panic buying can also be linked to the fear of being sick which can eventually lead to death. Unpaid utility bills and credit card dues can certainly bring about stress to anyone.
So you have decided that you would buy a life annuity even if there is a recession. The question now is what you need to look for in purchasing one? There are quite a number of factors that you ought to take into account. Below are some more useful tips that can help you out so that you can be certain that you are not putting your money into waste.
• Choosing the type of life annuity -there are two types of life insurance; the group and individual. The first refers to a group of people that would be insured. Often, it is one of the employee's non-cash benefits. On the other hand, the individual type is buying an insurance on your own. In this alternative, you need to subject yourself on medical examinations. Also, you might be asked to submit a medical history of your family. This is better than the other as you can take it with you when you shift to another job and you can tailor it to address your specific needs.
• Opt for a convertible life insurance. -a life insurance can be converted to another policy without the need to undergo insurability assessment for the second time. This applies often to term life insurances. Converting is helpful if the insured individual is on their 60's. This is because more often than not, some insurance firms do not allow seniors to renew a policy when they turn 70.
• Make sure that you do understand the features of your policy before you buy it. -there are many people that commit the colossal mistake of buying life insurance blindly. It is imperative that you are familiar with how your policy works. The specifications about the beneficiary must be clear to you. You ought to know if you could name and/or change it. Are the proceeds from the insurance upon your demise tax-deductible? What does it cover? Does it include disability insurance?
Buying life insurance on such tough times is indeed rational. However, it will require you to set aside some of your wants in order to accommodate another monthly payment. In addition, if ever you decide to buy one, make sure that your needs will be met. Life insurance is a good investment if you will be smart enough in buying.
Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on instant term life insurance, visit his site today.
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