Life Insurance Policies Are Not For Down Times

Do you have life insurance? Recently, some people have resorted to cashing in their life insurance policies in the hopes of using the funds for the rough economic times they are facing. While some insurance policies do allow for this, with something called a life settlement, it may not be the best route to take, especially when those funds from your insurance policy will be necessary for their initial intended purpose for later in life.

In a recent article by MarketWatch, there are some harsh warnings about cashing in your life insurance, your 401k or other retirement accounts you may. The warning comes from the Financial Industry Regulatory Authority. The Chief Executive Officer of that organization, Mary Schapiro, had this to say, "Each of these should be considered strategies of last resort," the article quoted. "They may raise cash quickly, but each also carries long term consequences that can undermine financial security in retirement and post the potential for losing a significant, and sometimes irreplaceable, asset.” Life insurance is a protection for later.

Life insurance is a very important financial security right now, with a recession on the doorstep of the country. Yet, down the road, the value of the life insurance policy will be even more essential to the overall financial well being your family has. For those who need life insurance and do not have life insurance yet, now is the best time to get into the right life insurance policy.