Why buy­ing life insur­ance in tough times is still impor­tant — and 3 ways to get started 

It’s hard to find positives when the U.S. economy is experiencing turbulent times. Grocery store prices can give us sticker shock. The declining value of retirement funds makes us wince. Interest rates, rents, and health care costs keep hiking up. Economists tell us most Americans are saving less and paying more for the same level of goods and services purchased in previous years.*

When we are questioning the need for every purchase, it’s reasonable to put life insurance on the back burner. Is it the right time to add another budget item and start paying insurance premiums?

The reality is that life insurance is a wise option you need as much in bad times as good, Assurity experts advise, especially if one considers risk as well as dollars.

“Life Insurance has a fixed small cost to provide peace of mind and financial security when everything else is changing,” explained Todd Reimers, Assurity’s Senior Vice President and Chief Distribution Officer. “It’s constant and always present to help people through difficult times and it helps eliminate uncertainty.”

Economic downturns and tight budgets also illustrate just how much a family or household depends on an income and what might happen if that income were lost, which is why insurance coverage is considered a key part of financial planning.

“It shouldn’t matter whether we are in a turbulent economy or a rosy economy. Life insurance is such a foundational part of planning for unexpected difficulties that it should be undertaken before more complicated or risky/aggressive financial planning,” advised Kevin Faltin, Assurity’s Chief Financial Officer and Treasurer.

Here are three simple steps you can take now to ensure you're protected for the long haul.

1. Look at your current insurance plan(s) and what you can afford.

What do you have? Is it a term life policy with coverage for a specific span of years or a permanent policy? Is it tied to your employment, and will you lose it if you leave your job? Does your existing plan offer enough coverage when adjusted for current cost-of-living factors?

What’s left unprotected – for example, could your children still go to college if a household wage-earner passed away? These are all questions your insurance professional can help you work through.

Remember, life insurance is generally much more affordable than one expects. Consider, for example, a 20-year $250,000 term life insurance policy for a healthy 30-year-old typically costs about $16-$30 a month.**

2. Make a plan and get started.

Start by identifying your biggest insurance need and the life insurance coverage that would protect it. Perhaps your biggest budget item is a mortgage. The right life insurance policy can give loved ones the financial freedom to remain in the family home if a parent or other wage-earner passes away. Use our handy worksheet to get a sense of how much life insurance coverage you may need.

3. Research and reach out.

You can make use of digital tools and agent expertise to learn about insurance needs and solutions. Assurity insurance professionals can find the plan you need today and for the future. You may also visit assurity.com to learn more about what we offer and how easy it is to get started.

Don’t wait for the economy to turn around, Assurity experts advise. “Protect yourself. Take action. It’s far less expensive than you imagine, and the application process has never been easier,” Reimers said.

*Reported by CNBC personal finance, October of 2022, https://www.cnbc.com/2022/10/19/report-american-workers-are-worse-off-financially-than-a-year-ago.html
**2023 Insurance Barometer Study by Life Happens and LIMRA and LIMRA survey, January of 2021.