Life insurance is important at any stage in life, but especially when you have a family and assets that you want to protect. Life insurance doesn’t lose any importance when you’re laid off from work. Just because you temporarily don’t have an income, it’s still just as important to protect your home, family, and other items of significance through life insurance.
In most cases, when your employer ends your employment, the life insurance coverage that you received from your employer ends on your last day of your employment. Although not all employers offer life insurance coverage, very often many employers do offer one or two times an employee's salary in life insurance benefits. So, if you have a life insurance policy through your employer and then restructuring or layoffs happen, and you’re let go from your place of employment, life insurance then becomes your responsibility. It’s important not to let your life insurance coverage lapse and since continuity of life insurance benefits is not guaranteed through COBRA laws that provide health coverage, getting your own life insurance coverage is even more crucial to ensuring the safety of your family’s future.
Life insurance can appeal to many people in a variety of situations. After a layoff, if you’re a single person with no debt and no assets, life insurance may not be a practical expense - at least not until you’re fully employed again. However, if you own any assets such as a house, or if you have any debt such as student loans, life insurance may still be a wise decision even if you have a limited number of other responsibilities. And, if you have a family that you are responsible for providing for, life insurance is definitely something you want to consider, regardless of your employment status!
So what are the types of life insurance that are most beneficial to you? Essentially, there are two types of life insurance policy types for you to consider: whole life and term life insurance policies. Whole Life Insurance policies are typically more costly, but you accrue equity in these policies over the life of the policy through money market funds. This is helpful because at any time, you can cash out of the value accrued in these policies, but as a result of this benefit, these life insurance policies typically have higher premium costs.
Term life insurance policies usually provide the best bang for the buck. For a smaller premium than whole life insurance policies, you still have coverage over your assets and family members, but you don’t accrue any equity in the policy over time. In both types of life insurance policies, your premium is determined by amount of coverage you want, your age, and your health. Term life insurance is typically the more practical type of life insurance to purchase, and this would be easiest to maintain during a period of unemployment.
No comments:
Post a Comment