Combined Insurance Outlines Top Reasons Consumers Should Not Drop Life Insurance - Even During Difficult Economic Times

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A top provider of supplemental insurance provides several key factors consumers should consider before making life insurance decisions

Combined Insurance

While today's economic picture is uncertain due to the recent housing crisis, rising prices for fuel and other goods, and job losses in some industries, consumers in need of financial relief should make a careful evaluation before cashing in or cancelling existing life insurance coverage.

Combined Insurance, a top provider of supplemental insurance, advises consumers to avoid drastic measures, such as dropping or cashing in life insurance policies, to help cope with today's challenging economic environment. The insurer outlines several key factors to consider before making a decision to discontinue coverage.

According to a recent report in The Wall Street Journal (June 2, 2008) some consumers are resorting to pricey, often-risky alternatives such as tapping insurance policies or 401(k) accounts to help stay afloat financially. Due to a combination of factors including job cuts, decreasing home prices and increasing food and energy prices, there is a growing demand for cash-raising techniques to quickly provide access to the value of assets such as life insurance, retirement accounts or mortgages.

According to Steve Saurs, vice president of Marketing for Combined Insurance's Life & Health Division in the U.S., "While today's economic picture is uncertain due to the recent housing crisis, rising prices for fuel and other goods, and job losses in some industries, consumers in need of financial relief should make a careful evaluation before cashing in or cancelling existing life insurance coverage."

Combined Insurance outlines several important factors to consider before cashing in life insurance policies or letting coverage lapse:

  • Drop Your Policy - Lose Your Rate
  • Life insurance premium rates are based on a number of factors including age. If you cancel your coverage then decide to repurchase later, you will likely need to pay more for a like amount of coverage.
  • Healthy Now Does Not Mean Healthy Later
  • Health status, like age, is a key factor in determining life insurance premiums and coverage. If you cancel coverage now, while healthy, there is no guarantee you will qualify for the same coverage at a similar cost.
  • Employer Health Plans Often Change
  • If your life insurance policy was purchased through your employer, remember that employer benefit plans often change and life policies can be impacted. If you drop an existing supplemental life insurance policy and your employer subsequently changes or reduces benefits, you might not be able to purchase coverage through your company.
  • Don't Think Fast Cash - Life Insurance Plans Can Offer Income or Mortgage Protection
  • If you purchased a family income policy and you die, your family will receive monthly income for a period of time to make up for your lost wages. This type of shorter-term protection can help a family get back on its feet in the event the breadwinner's income is lost due to a death. Likewise, if you purchased mortgage insurance and you die, your mortgage is paid off.
  • Expect the Unexpected
  • Remember the reasons you selected life insurance coverage in the first place. Generally people select these policies to help financially protect their loved ones. Think about the impact on those left behind if your life insurance policy is dropped.

For more information regarding the wide range of benefits supplemental life insurance can offer, visit: http://www.combinedinsurance.com.

About Combined Insurance Company Combined Insurance (http://www.combinedinsurance.com) is a leading provider of supplemental accident, health and life insurance products and is a member of the ACE Group of Companies. With a field sales force and corporate staff in excess of 10,000 people worldwide, Combined meets the growing coverage needs of policyholders around the globe. For more information, call 1-800-490-1322 or visit http://www.combinedinsurance.com.

About ACE The ACE Group of Companies is a global leader in insurance and reinsurance serving a diverse group of clients. Headed by ACE Limited (NYSE: ACE), the ACE Group of Companies conducts its business on a worldwide basis with operating subsidiaries in more than 50 countries. Additional information can be found at http://www.acelimited.com.

*Article Source: Tapped Out: Pinched Consumers Scramble for Cash. Wall Street Journal, June 2, 2008.

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