In a struggling economy, it’s important to protect yourself and your family. Life is not a stable, predictable thing, which is why a life insurance policy can be so important. According to William Schantz, whether there’s a recession or the economy is prospering, having a life insurance policy is important no matter what.
Why is Life Insurance Needed During a Recession, Explained by William Schantz
Financial Safety Net
Insurance policies are there as a safety net, regardless of what the financial condition of the economy is. However, it becomes extra important during a recession because in a worst-case scenario, you and your family would have something to fall back on. For example, morbid as it sounds, funerals are expensive and in your absence, you’d want your family to avoid any financial trouble.
Debt Payments
Another benefit, William Schantz explains, is that life insurance can also pay off your debts. In a recession, financial problems are at their peak. In such a situation if you were to lose your job, you’d be in more trouble and would have problems with daily expenses. Credit cards can help, but can also put you in debt. Life insurance policies can help your family with paying off these debts in case something bad were to happen to you.
Volatile Market
The stock market becomes extremely volatile during a recession, which can make people worry about their investments and how their families would be affected by this if something were to happen to them – especially if they are the main breadwinner of the family.
But as volatile as the market can be, life insurance policies can help. If something were to happen to you, your beneficiaries will receive the payout after you pass away, so you can rest assured that no matter what happens to your investments, your loved ones are financially secure.
Unexpected Events
No one can truly predict what can happen during a recession. Life is so unexpected that we never know what’s coming for us. William Schantz explains that a life insurance policy is a good way to prepare for this unpredictability. After all, with a decent life insurance policy, you can build the web of security for your loved ones. You can calculate how much coverage you might need and what you’d have to pay to get it.
William Schantz’s Final Thoughts
According to William Schantz, it’s always best to get a life insurance policy when you are young and healthy, since they will cost less at the time. However, if you don’t have one already, don’t wait till after the recession to get one.
While thinking about life insurance is somewhat morbid because it considers the end of life, it is still important – especially since death is an unavoidable reality. Being prepared for it beforehand and making sure that your loved ones will not be thrust into financial troubles after you pass away is the best way you can care for them while you are still alive.