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Life Insurance – Protect Yourself in Unstable Times

12 June 2012 14 Comments

Unemployment is at an all-time high – especially for young people who are newly out of college and desperately seeking jobs in their chosen field. The work just isn’t there, and things aren’t looking to get better anytime soon. If you have a job, consider yourself one of the lucky ones. Taking out life insurance to protect yourself in case you end up jobless is one of the single best things you can do in this economic climate.

While you’re still young, it’s a great idea to buy a whole life insurance policy. Many analysts have advised against this quite strongly, I know, but the economy of late has completely changed the playbook for personal finance. If you maintain the employee mentality and neglect to cover yourself and your family in case of a job loss, then you may find yourself in a sticky situation if you walk into work one day just to discover you’ve been downsized.

Businesses are not stable, and more and more companies are shipping jobs overseas. The days of the gold watch and retirement pension that lasts until your funeral have long since passed. It’s time to conjure upthat good ol’ pioneer spirit and start taking care of your business yourself. That means doing things like this blog suggests – creating multiple streams of income to increase the stability of your future earnings. But it also means building in safeguards such as whole life insurance that can catch you if you fall.

The Ultimate Backup Plan

When you’re in between jobs, having a whole life policy can really pick up some slack – it may even save you from making that dreaded trek to the unemployment office once you’ve used up your savings.

And what if you don’t even have an emergency fund? That’s where whole life insurance can offer a helping hand, too. As per this website whole life insurance is more expensive than term life in the beginning. But it may prove its worth many times over due to the cash value of your plan. Many whole life policies can even serve as alternative sources of living expenses if the insured parties do indeed suffer a job loss.

There are other uses for a whole life plan in the absence of an economic disaster, however. For instance, you could invest in or begin your own business, buy a house, or even save for your kids’ college fund.

Penalty-Free Cash Stash

A whole life insurance plan is also a great way to become your own bank. You can use the living benefit to furnish yourself with tax-free emergency money to take care of an unexpected expense, such as a surgery or other life crises. If you were to borrow from a traditional retirement account, then you would have to pay a hefty penalty for the early withdrawal. Not so with whole life plans – and you don’t even have to wait until you retire to get your hands on the dough when you need it.

This post is intended to make you think. According to 20s Money, “To prosper in this environment, you have to be creative, innovative, and willing to compete and work harder than your neighbor.”

Buying a whole life insurance policy to protect yourself during your younger years is one way to do that, and it’s a creative strategy for this weird, wobbly economy in which we all currently reside. And isn’t finding creative ways to save money ultimately what it’s all about?

 

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14 Comments »

  • Steve said:

    So you are saying that because "unemployment is at an all time high" 20 somethings should buy expensive whole life insurance that provides a modest cash savings decades from now? Creative or not, using whole life insurance as a means to protect against job loss seems kind of dumb.

  • Authorhouse said:

    This is definitely a topic that's close to me so Im happy that you wrote about it. I'm also happy that you did the subject some justice. Not only do you know a great deal about it, you know how to present in a way that people will want to read more. Im so happy to know someone like you exists on the web.

  • Sam said:

    Very informative post Dude.. Liked it.

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