In time of financial stress, to keep or to discontinue? This is a question I have been asked a few times. My answer: you decide.
Post the COVID-19 pandemic, the world’s economies, businesses and individuals will have all been affected in some way. Many businesses will restructure or reinvent, which often results in cost cutting, tightening budgets and improving the bottom-line. In either process, some positions will be considered unessential or obsolete, which can bring upon an unfortunate outcome – employment redundancy. If you are facing redundancy, your financial future suddenly becomes uncertain. Unless you have saved up sufficient emergency funds, you will face the reality that you must now reduce your expenses while searching for another job. This could take weeks or even months.
This strain on your financial situation may cause you to see life insurance as an unessential expense. But could removing the financial security for your loved ones in the case of unforeseen illness or even death be the answer? Having spent over 25 years in the insurance industry, I still find it difficult processing claims in the event of death. The hardest ones are always those who had insurance but decided to discontinue their insurance because they felt they could no longer afford it. These families have already been devastated by the loss of their loved ones, and now they also have bear the financial burden left behind. This can be particularly difficult for non-working widows with young children.
Before you decide to discontinue, I recommend that you speak to your financial adviser. They have the expertise to guide you through the process.
Life insurance, for some, may seem unessential but when a sudden event occurs, will non-insurance bring upon financial devastation to your loved ones? You have the answer.
