Have you heard about the infamous, ‘Great Recession’? For 2 years, the Gross Domestic Product (GDP) decline in the first few quarters of 2008 and 2009.
The results were high unemployment rate, bankruptcy, and relatively low production as the majority of the people don’t have money to buy anything at all or the value of money is too low for everyone.
For those who don’t know, Economic Recession a huge economic fall off. It means there’s a significant decline in the economic activity in one’s country.
According to the National Bureau of Economic Research (NBER), one of the several economic changes such as the instances we’ve mentioned.
There’s no guarantee that any economic activity will continuously prosper or go downhill. For years, the economy is stable while the following month, it’s no longer.
This is why you need to prepare for what’s to come. But how were you able to do so?
Protecting Income During a Recession
You might be thinking about several ways to do so. For instance, you can even consider steps such as creating emergency funds, looking for additional sources of income, planning for long-term goals or investment, diversifying your finances, and be realistic about the situation.
These are all true, and we commend you on that! However, one of the best, if not the best step to do is to apply for insurance.
What we typically invest in is Life Insurance, so if there are any critical moments in our lives, you’d be financially capable. That’s why there’s nothing wrong with that. It actually has its own place.
However, the majority of people are employees and don’t own anything at all. The tendency is by the age of retirement, they wanted to get a beneficiary coming from the money they’ve invested, and to enjoy what they’ve worked hard for decades.
But in Black Swan or unpredictable times, there are no specific or stable results. At the age of 30, you might be one of the many that would experience an economic recession. So where will you be getting all the money to pay your bills? What would happen to your investments?
That’s the joy of having to protect your own income by getting the Income Protection Insurance. The best insurance that an entrepreneur could ever have!
What Does it Do
It can also be referred to as a Permanent Health Insurance that is specifically designed to generate income if you weren’t able to work for different factors such as illness or injury.
This replaces parts of your income if you can no longer work, and you can claim it as many times as you needed depending on the insurance policy.
There are 3 Different Types of People
1. The Dependent – those who rely heavily on what they can receive from the Insurance they regularly pay to the Government or Other Private Sectors.
2. The Self-Reliant – a person who doesn’t need anyone by himself. A real-independent person who relies on his actions, and suffer the results alone.
3. Those who are forced to Change – people who need to pivot and adjust well.
Among the three, how do you categorize yourself?
The thing is, you need to be able to create anything that sells. In digital times, you can do so without any physical product, and just by learning skills on how to Pivot and Adjust in tough situations such as recession due to different causes.
This means you would be able to prepare yourself for better or for worst! You can well-adjust and plan a new strategy in earning money whether the condition is fine or not. This also means learning skillsets that will help you get through rough times.
Create a service or find a product that can sell today! If you think Internet Marketing sells, then learn how to do it. If applying for an online profession is the key, then start ahead. The Insurance Policy for your Income Protection would ‘know that you can earn money no matter what condition there is!’
Who do you think can survive further in any condition? The First Types of People who would largely depend on others? The Self-Reliance that can stand with their own feet? Or those who are forced to change, and can very well adapt to anything at any time?
What about you, where do you want to fit into a group?
There’s no need to panic. If you have the resources, time, and capability, now is the best time to start! Handle your finances well, and keep it protected. Think about what are the most relevant jobs there is, and to learn how to get them.
