How Insurance Prepares You For a Recession…
A recession is a period of time when the nation’s economy is experiencing a slump. Many consumers also feel the effects of that slump in many different ways. Personal income typically decreases and unemployment becomes a higher risk for many individuals. One of the ways to reduce the risks associated with a recession is to have the right type of insurance.
Life Insurance Prepares for the Worst
Get life insurance outside of your company. Many large companies provide life insurance policies for their employees. Even though many of these policies are free to employees, they often do not provide the level of coverage as seen with outside policies. Not only that, if you leave the company for one reason or another, your life insurance policy won’t follow you. Don’t wait until a layoff because a lapse in coverage could be a big mistake. Instead, use the internet to find free life insurance quotes and select a life insurance policy outside your employer’s plan.
Health Insurance Wards Off High Medical Bills
If you’re covered under an employer’s health insurance plan, COBRA, a federal law, allows you to continue receiving that coverage for up to 18 months after leaving the company. The only drawback is that you now have to pay the full premium for coverage. That premium could be much higher than what you were paying while you were employed.
Avoid going without health insurance. Depending on your current health, you can obtain private health insurance for a fraction of the cost of COBRA insurance. As advised with life insurance, you should shop around for free health insurance quotes and compare to the cost of having COBRA insurance. If you allow your employer’s group health plan to expire, you may pay a higher premium to a lapse in coverage.
Lower the Cost of Disasters
Even though insurance seems like you’re throwing money away, it’s better to pay for insurance and never need it than not to pay at all and need it later. The economic landscape is very unpredictable during a recession. Because of the unreliable financial circumstances, it’s important to protect yourself with insurance. Insurance will keep you from having to pay for expensive damages done to your personal property, like your home and your car.
When a recession comes, you don’t know how long it will last or the exact effects you’ll feel from it. But, with the proper planning you can lessen the effects of catastrophes by keeping yourself and your family insured.
March 12, 2009, Posted by Rainy Day Mitch