Income Tax Rates

A recent report by the Center for Economic Policy and Research showed an alarming trend amongst life insurance holders in the face of the current recession. There has been a steady stream of families that have opted to drop their life insurance coverage to ease their cash flow. As of the date of the report 4.2 million people have already lost their health insurance and life insurance policies. It is estimated that by the time this recession has run its course, the number of people who will lose their health and life insurance policies will at the very least double. Below are a few pointers and things to remember before you fall into the "uninsured" group.

The very first thing that you have to do is be sure where the source of your life insurance is from. In this economic environment it is extremely unsafe to rely on your employer provided group policy arrangement. The reason should be obvious; if you lose your job then you also lose your life insurance coverage. The higher possibility of job redundancies means that you should get your own independent life insurance policy just in case. It is advantageous to get another life insurance policy drawn up now. If you wait until you are jobless to apply then the rates will be vastly more, it pays to obtain a life insurance quote when you are still under the employ of your current company.

Another thing that you have to be careful about is having joint life insurance policies with you and your spouse. Initially it might seem like a good idea as it is much cheaper than having 2 separate life insurance policies. This however covers the negatives that become quite apparent when you look into the details of this joint coverage. You are actually only buying one life insurance policy because there is only one death benefit that will be paid to the surviving spouse. After the surviving spouse receives the death benefit, he/she won't be eligible for life insurance any longer because of their age. This means you are restricting yourself to only one death benefit. We recommend that spouses should each have one life insurance policy each. Ask your provider for separate life insurance quote now. This arrangement although costing more is easier to handle and does not have any negative loop-holes.

One area that people can save on is when they have a critical illness policy run concurrently with a life insurance policy. Most people don't know that you can actually make savings if you have both the critical illness and life packaged together in a deal with one insurance provider. Both life insurance and critical illness policies have certain coverage items that may overlap so you have to contact your insurance provider and tell them you want to put both policies into the same product. This will save your money from stopping the double coverage while also save a bit from the insurer giving you a slight policy discount for having more than one insurance product with them.

It is understandable people would think of laying off their life insurance payments for other seemingly more important expenses that have to be settled. This is because of the priority of life insurance compared to their other things is unbalanced in their minds. This is however a very dire mistake. Life insurance coverage offers some of the best returns for your death benefit when compared to any normal investment. People have to really reorganize their payment priorities and start to rank life insurance payments higher. This is especially true in the current recessionary times where we are forced to cut back.

Overall, there are a few things that you can do to save on the costs of your life insurance policy however it is more important to understand and appreciate the importance of life insurance even in the times of a recession. If you have people depending on you then it would at best be irresponsible to leave the family that depends on you on the line if you should pass away. Never forget that.