Why you should buy life insurance in an uneven economy
Whether you're a young adult or a senior citizen, a parent or a spouse, most financial advisers would recommend having a substantial life insurance policy in place.
Life insurance can protect your investments and your beneficiaries by providing financial support in the event of your death. Some policies even come with a cash-out option that can be accessed while you're still alive.
While life insurance remains consistently beneficial for policyholders it can be particularly helpful to have during times of economic uncertainty.
If you're in the market for life insurance - or want to supplement the coverage you already have - then reach out to an expert today who can help you get started with a free quote.
Why you should buy life insurance in an uneven economy
Amid stubborn inflation and a volatile stock market, it can make sense to shore up your life insurance support. Here are three reasons why you should act now.
Inheritance
With real estate prices expected to drop and interest rates continuing to rise the real estate inheritance you planned on leaving your beneficiaries is likely to suffer. While that can potentially improve in the future, no one knows when that turnaround time will come. In the meantime, home values (and the equity tied to them) will likely be reduced.
This is why life insurance is a smart move. Life insurance isn't tied to market swings and moves made by politicians. What your beneficiaries are entitled to will stay the same regardless of daily market activity. So if you have a $1 million policy today and the market plummets tomorrow your life insurance will remain the same.
Start exploring your options now and put in place reliable protection for your loved ones.
Access to cash
Life insurance is often thought of as a "set it and forget it" type of investment. But there are certain types of life insurance, like whole, that can actually be used while alive. These insurance types have a cash option that can be particularly desirable during times of economic uncertainty.
Just note that whole life insurance policies are typically more expensive than more conventional term ones. And it will take some time to build up the cash reserves. With that being said, the benefits of whole life insurance are significant, particularly when traditional investment forms are suffering.
Peace of mind
Times of economic uncertainty can be stressful, particularly if you're keeping an eye on the performance of your 401(k) or Roth IRA.
Fortunately, life insurance can ease these concerns. By knowing that you have a baseline of protection in place that won't be affected by the current economy you can rest a little easier.
No one wants to lose the value of their investments but by having a life insurance policy that won't budge during an economic storm you can re-focus your attention on investments that need guiding.
It's easy to feel dismayed during times of economic upheaval but a life insurance policy - in the right amount and type - can significantly help ease those concerns.
The bottom line
Most financial advisers consider life insurance a worthwhile investment regardless of the economic headwinds. But during a time of high interest rates and inflation, it can be particularly helpful to have - both for your pocket and for your peace of mind.
So speak with a life insurance expert today who can help you build a plan that works for you.
