There is a belief in the insurance industry that life insurance is ‘recession proof’ (there, I used the dreaded ‘R’ word). There is truth to this belief, in that one’s family, business or estate protection needs still exist even if death occurs in a down economy. In fact, many would argue the need is greater in this type of environment.
However, increasing gas, energy and food prices often force families to make tough decisions about reducing expenses. Research by a Harvard Law School professor shows median household income dropped by $1,175 from 2000 – 2007, while necessary expenses such as food, housing, gas, and health insurance increased some $4,655 during the same period. Numbers like these do not paint a very rosy picture.
Life insurance remains an important part of an individual’s financial portfolio during slower economic times. Policy owners should do everything possible to keep existing policies in force. One option for those contemplating letting a policy lapse is to shop around for a new policy with a lower premium. As other expenses have gone up, term life insurance rates have dropped over 50 percent since 2000. Owners of an older term or even permanent life insurance policy may be pleasantly surprised to discover today’s lower premiums. Policy owners can often take out a new policy with the same amount of coverage for a lower premium than they are currently paying, despite being a few years older today.
Give one of our licensed representatives a call to comparison shop for you or view quotes on our website. You may even save enough to keep a little extra gas in your car!