After losing a job, you will likely consult your budget and try to find ways to reduce your cost of living during this unexpected and financially challenging period. Unfortunately, many individuals look at their various insurance policy premiums as acceptable expenses to cut. They may begin the process by increasing deductibles and lowering limits in order to adjust premiums down. Then, they may chop out various “optional” benefits within their policies and finally, they allow coverage such as life insurance, which isn’t required by the state or a lender, to lapse through non-payment of premiums. Treating insurance coverage this way can be one way to reduce immediate expenses, although it’s an activity that can be financially devastating over the long haul. The less insurance coverage you have, the more risk you bear; and after a job loss, you can’t afford any additional financial risk.
Why maintain life insurance? Your family needs life insurance in order to keep their financial lives together after a loss. When you lose a job, your financial position becomes even more unstable, so leaving your family without a life insurance benefit can be devastating. Instead, find out if your insurance company can do an applied premium loan and utilize some of your cash value to make premium payments.
Why not reduce auto insurance coverage? It will be difficult to find a new job, and get to one if you are offered a position, if you don’t have a car. Without car insurance to pay for damages after an accident, or with a high deductible that puts more pressure on you to pay for repair costs, you could be sabotaging your ability to get a job and remain employed again. Not to mention the risk of liability you take on, which can easily wipe out retirement and other savings.
Do you really need that much home insurance? It’s hard enough to imagine how you could afford to replace all your property and rebuild your home after an insurable event that occurs while you are employed, but imagine having to do so when you are unemployed.
Can you put health insurance on hold? Your health is your most precious asset. Without it you can’t work, enjoy your family or have a happy, fulfilled life. The ability to have serious problems detected early and to continue receiving preventative and emergency care measures is vital when you are unemployed. In addition, keeping continuous coverage ensures that your pre-existing conditions won’t be excluded by certain new plans.
If you have questions about how to continue with your Oklahoma City Insurance policies after a job loss, or how to replace those coverages lost after a job loss, give us a call at Strunk Insurance today.
