"Today, very few people can guarantee job security. If you have life insurance coverage through work, keep in mind that it will end when you quit, retire or lose your job," says Byron Udell, founder and CEO of AccuQuote. "Purchasing an individual term life insurance policy will provide your family with the cushion they need to survive financially - if you were to die today."
Udell lists the following reasons why it's important to secure a term life insurance policy during these bad economic times:
- Rise in Unemployment: The unemployment rate is the highest it has been in years. Keep in mind that group life insurance coverage benefits are not portable, which means if you lose your job, you lose your benefits.
- Cuts in Benefits: Employee benefits are being cut as a way for companies to save money. If your employer is pulling back on pension benefits, your spouse may not receive as big of a death benefit as you anticipated a few years ago. An individual life insurance policy can make sure that your spouse is adequately protected.
- Decreasing Assets: For many people, the biggest asset they own is the equity in their home but the housing market has taken a big hit over the past few years. Further, 401k and other investments have also seen precipitous drops in value. Families that were counting on savings or home equity to protect their family need extra life insurance to fill in the gaps.
Udell also suggests that consumers needing term life insurance coverage should consult an experienced life insurance professional. These professionals can help consumers determine what type and how much life insurance to buy.