Things Are Tough – Don’t Cancel Your Life Insurance
The current economic mess is forcing many of us to rethink our budgets and make some drastic changes. Cutting back on various items seems the best way to make ends meet. But cancelling important life insurance policies to save money could prove a very costly mistake for you and your family.
If you cancel your life insurance policy that puts an instant stop on the cover it provided. For example, the payout from your policy might be earmarked for providing care for your children if you're no longer around. Unless your circumstances have changed, that need for protection is still there. So ask yourself how your family would cope if the worst were to happen to you, but they received no financial help?
When your financial situation improves, you may have to pay more for the same level of life insurance cover. That's because you'll be a little older. And the older you get, the greater the risk you pose to an insurance company, which means the premiums for your life insurance policy will be more expensive.
You could end up chasing after life insurance you can afford your whole life.