It’s a sad reality. As important as insurance is, many of us simply cannot afford to buy it. I would caution anyone to simply stop paying insurance bills when money starts to become short. If you absolutely need to cut out some coverage, there is a better way of getting it done. It involves asking yourself a few questions:
-Can I simply resume my policy when times get better (not necessarily true for policies such as life insurance but might work for car insurance if you stop driving)
-What would be the consequences if something did end up happening (what would you do if a fire burned down your house with no insurance coverage?)
-Which types of insurance can you better afford to live without
There’s Usually A Better Way
In many cases, you might be surprised to hear that other options exist. For example, you could simply increase your deductible. Sure, it will make it less helpful if something happens but you will keep your protection in case something major happens. Insurance companies will usually prefer that you go down this road instead of simply dropping your policy.
Remind Yourself To Review Your Situation Later On
It’s worth it to put a note on your calendar or set yourself a reminder of some sort in order to not just “forget” to get back your coverage once things do get better. It’s easy to start thinking that it’s unnecessary after a few months or years. You will probably think exactly that until the unfortunate thing happens and you actually end up needing it.