People find it difficult to pay the premiums of the insurance, at the time of recession, when there is a threat of losing their job and income. But having life insurance during the recession is important to render a financial safety net for the family, who can stay afloat in the event of premature death of the breadwinner of the family. The death benefit from the life insurance can be used to pay for the expenses such as,

• Mortgage or rent payments of the family. 
• Everyday life expenses
• To pay for end of life costs such as a funeral or medical bills
• To care for the aging or ill parents
• To pay for the education of the children and their school tuition.
• Pays for outstanding debt, such as loans and credit cards.

But during times of economic uncertainty, life insurance companies do not raise their premiums. Instead, they reduce the premiums and render other subsidies for their policyholders.  They prepare for short-term volatility and withstand the unprofitable period.

The premium rates of term insurance policies will not be much affected. But the insurers can escalate the premiums of whole life plans as they last a lifetime, increasing the risk of the insurer by issuing them.

Reasons Why Life Insurance Is Essential During a Recession
The economic recession and downturn will affect all people to some extent and the worst extent, people end up losing their jobs. The recession also forces people to cut back on their spending habits and it could be hard for them to pay for their insurance premiums as well. But in any case, having a life insurance policy is a must and its merits cannot be overseen even when we had to face an economic recession.

Also, after the insurance policy has been issued, the insurer cannot change the rate of the premium, even during a recession. Some insurance companies also render a premium relief program, through which they offer flexible payment plans for the insured, and extend the grace time of paying the premiums. But it is important to choose an insurance company that has credible financial strength so that they have the cash reserves to meet their financial obligations. 
Thus there is no problem in continuing with the life insurance during the recession period, as the sum insured will offer a tremendous financial backup for the nominees and the ailing family can get some relief with the sum assured. People need not doubt that the insurers will not be able to pay the sum assured when they face economical downtown. The companies will have sufficient backup to deal with their financial obligations. 

In Summary
Life insurance is mandatory for financial planning, irrespective of the economic conditions of the world. It becomes all the more important when one has dependents. Buying a new policy during a recession is also not a bad idea, provided the cost and the financial stability of the company are within reasonable limits. 

​Source: https://www.insurancedekho.com/

Does a stay-at-home parent need life insurance? The answer is yes.
​
Why? Because, should the unthinkable happen to the stay-at-home parent, the other parent – the primary or sole breadwinner of your household – would have to continue working to support the family and also pay other expenses, such as childcare, to replace your at-home contributions to the family.
The work contribution of a stay-at-home parent should never be discounted when determining life insurance coverage. It’s also not a question of “if” a stay-at-home parent should have as much, or more, or less, life insurance coverage as a working parent. Instead, determine the need for life insurance for a stay-at-home parent based on his or her contributions to your household.

Putting a Value on the Contributions of a Stay-at-Home Parent The payroll solutions company Salary.com, in its 14th annual Mom Salary Survey, attempted to calculate the hypothetical salary of a stay-at-home mom. Survey results found, on average, that stay-at-home moms juggle 96.5 hours of work each week and would make an annual salary of $118,905 if employed. This of course was a lighthearted rather than scientific way to value the contributions that stay-at-home parents provide.
Among the tasks that stay-at home parents address:

• Childcare
• Cooking
• Cleaning the home
• Running errands / grocery shopping
• Doing laundry
• Serving as family chauffeur

To determine how much insurance coverage a stay-at-home parent in your home might need, simply ask: If something were to happen to the stay-at-home parent, how much would it cost the bread-winning parent to hire someone to take over the work load?

​Source: https://www.gerberlife.com/

Despite the devastation the pandemic has caused over the past year, perhaps there is a silver lining to be found in COVID-19’s dark clouds. Mortality and financial wellness have been brought into sharp focus, resulting in more people seeking life insurance coverage to protect their families.


Thirty-one percent of Americans now say they are more likely to buy life insurance,* up from just 11% in 2011. However, a common misconception around life insurance affordability persists — the majority of people overestimate the cost of life insurance by as much as three times the actual cost. This misconception, combined with a tendency to prioritize other financial needs, leaves too many families vulnerable to financial hardship if a loved one unexpectedly passes away.

Of the two main types of life insurance — term and permanent* — term insurance can be an attractive option to many due to its affordability. With the help of term insurance, families can afford to make sure they will be able to maintain their lifestyle and keep their dreams within reach even if a family wage earner dies.

Greater accessibility and speed make buying term insurance easier today* than it was in the past. Many companies have expanded their suite of online tools and resources to offer an accelerated application process, faster underwriting, and more efficient application processing.

Term insurance can also be a central pillar of a long-term financial plan. It can lock in your insurability — the ability to qualify for insurance — at the same time it locks in affordable death benefit protection for a set period of time.

A closer look at locking in future insurability with a term life insurance policy reveals three significant benefits.

Protection through health changes. As people age, they are more likely to develop health problems that could make life insurance more expensive or even disqualifying. Many term life policies have a conversion feature, which allows a policyholder to convert their term policy to a permanent policy before it expires without going through another medical exam, regardless of health changes. This ability to lock in insurability is advantageous given the many health changes you might experience throughout your life.

Protection through job changes. Ten percent of workers lost employer-provided life insurance coverage as a result of the pandemic. Even those with employer-provided group coverage often overlook the employee-paid, Optional Term Life plans during open enrollment, leaving them with inadequate protection. While it’s ideal to have a combination of coverage individually and through your employer, term insurance offers higher levels of coverage and more stability during employment disruptions.

Protection against debt and final expenses. Americans are currently carrying approximately $14.35 trillion in mortgage and non-mortgage debt. Life insurance can help your loved ones pay off debts while maintaining their lifestyle and forging ahead in pursuit of their hopes and dreams.

Want to know more about Term Life Insurance or ready to get started? Give USA Mutual Insurance a call at 718-285-6500 to speak with a Life Insurance Professional. 

As a small-business owner or partner, you may wonder what would happen to your business should anything happen to you. How would your family cope with the loss of income? What about your employees and their families? What happens when a business has debts that are backed by assets like the family home?

You’ve probably planned for some of these questions, but before you take that leap of faith, take a look at these common myths and consider a reality check.

• If I die, my spouse can run the business.
  Reality check: In many cases, the spouse neither wants to nor is capable of running the company. Small businesses are often dependent on the marketing, technical or managerial skill of the owner. Take that away and the business may fail.
• A competitor will buy the business.
  Reality check: Possibly, but this may not happen to the advantage of the surviving family. The competition may be either looking to take customers away from the business, purchase equipment and inventory cheaply or buy the business at a low price.
• My death or my partner’s death will not financially impact the business.
  Reality check: Each owner of a small business usually makes a very specific and important contribution to the business or has a special skill that is hard to replace.
• A key employee can run the business.
  Reality check: Maybe so, but if the employee is truly running the business, he or she may require a salary commensurate with the added demands of the job. The funds needed to keep everything going may be more than the business can bear.

Here’s where life insurance comes in. Three important ways that life insurance can protect your small business include:

1. Key person insurance. This is a life insurance policy purchased by the business on the life of a key employee and payable to the business. When a key person dies, insurance can help make up for lost sales or earnings and cover the cost of finding and training a replacement.
2. A buy-sell agreement funded with life insurance. This allows remaining business owners to buy the company interests of a deceased owner at a previously agreed-upon price, which helps guarantee that surviving family members will be fairly and promptly compensated for their share of the business.
3. Individual life insurance. A policy that you own individually can provide your family with additional money to pay off personal debts, cover ongoing living expenses and fund future needs such as college or retirement.

Give the team at USA Mutual Insurance a call at 718-285-6500 to schedule an appointment with a Life Insurance Professional to help guide you through the best policy options to help protect you and your business.

​Source: Lifehappens.org