This summer substantial layoffs occurred within hundreds of big name companies across the nation. Headlines reporting the unfortunate truth: the U.S. economy has not recovered – leaving millions of Americans fearful of what the future may bring.
According to the U.S. Department of Labor and Statistics, 6.1 million Americans were laid off between January 2009 and December 2011. Only 56 percent were able to find jobs as of the beginning of 2012. And, although 3 million jobs have been created through Obama’s recovery plan, most pay less than the jobs lost and some are just part time.
Statistics like these make it imperative to have a plan in the event you must face a layoff.
- 401k. Draining your 401k may seem like a good idea initially, but you may want to consider just how much that will cost you. Getting your hands on that money before retirement often requires fee payments and is accompanied by penalties. Weigh these costs against the costs you may face before you find a new job. Give yourself a timeline to find a new source of income before you cash in your 401k.
- Health insurance. If your family’s health insurance is covered by your job, you need to consider where you will get health insurance in the interim. If your spouse is working, switching to his or her insurance plan is an option. If you do not have a spouse or he or she is not working, you will need to consider private health insurance. Either way, you need to consider how ensuring continuation of your family’s health coverage will best suit your current financial state.
- Life insurance. Layoffs can make it seem as though your entire world has crumbled, however leaving your family and loved ones unprotected in the event of your death is far more disconcerting. In addition to grieving, your family may have to cope with losing their home, struggling to pay funeral costs and the staunch realization that their future is in sudden jeopardy. Without you, the hope of recovery is slim. That is why it is important to find an affordable life insurance plan – independently or through your employer – that will cover your family in the event of the unexpected. Talk to your employer before cutting ties to discuss how your life insurance policy may carry over or search for a life insurance policy online that will suit your needs and the needs of your family for a reasonable premium. There are many online tools to help you get free life insurance quotes and gain a better understanding of how the right life insurance plan can fit these needs of anyone, in any situation.
Forecasters predict that the economy will not dip into a recession in 2013 – tepid growth is expected – but it is always smart to have sound plan to protect yourself and those you love because life often brings the unexpected.