Life insurance
The coronavirus pandemic has made many people reconsider their priorities in life, think about their mortality and how to work toward the financial security of their loved ones in case something bad happens to them. Will life insurance help them?
Financial experts advise against spending money on life insurance. That’s because “due to Covid-19, what were once very inexpensive term life policies will be price adjusted to account for new risks,” says Kasey Ring, owner of Upward Personal Finance. More than that, it’s an extra expense that should be avoided at all costs during a worldwide crisis. “Adding an expensive premium to your bills is not wise when you need money to live today,” warns Michael Bonebright, consumer analyst with DealNews. “Whole life insurance is an especially poor decision. Because it’s an investment product, whole life insurance has the steepest premiums, typically seven to 10 times the price of term life.”
A new car
Gas might be cheaper these days, but that still doesn’t make it a good enough reason to buy a new car. Why? Well, according to financial specialists, you might pay less for gas but you’re still adding a new cost to your monthly bill. “While it may seem like an opportune time to buy a vehicle at a bargain price, you don’t want to commit to a car payment — or tie up your cash — during a period of economic uncertainty. Instead, keep driving your clunker for a while,” recommends Nathan Hamilton, cofounder of The Ascent
Just because you don’t like the way your car looks anymore that’s not a good enough reason to trade it for a new one, at least not right now. “Replacing a rusty used car that’s still mechanically sound, but cosmetically looks pretty bad, makes little sense if that rust bucket still gets you to work each day,” says Timothy Wiedman, retired associate professor of management and human resources at Doane University.
Related: 7 Car Dealer Tricks Used at End-of-Year Sales
