Paycheck to Paycheck?

September 23, 2011

Reviews

Boy, sometimes I read the news and I get the heebie jeebies. It’s getting scary out there! I try not to think about it, but the government and their hooligans are doing an awful great job wrecking the economy and the retirement savings of our older folks in this country. The same is happening in the economies of many other developed nations, too. What the heck is going on?

I read in one news story that more and more, people are living “paycheck to paycheck.” After the high cost of living and taxes, people are finding themselves unable to save any money for those emergency funds or rainy day funds. According to one study I saw, Australians would be completely penniless if they missed merely one month of work. I wonder what it would be for the average American. That’s awfully sad.

Insurance companies are offering something new in light of this kind of uneasy economy: income protection insurance. I’ve been offered it before when I opened a credit card, but I never gave it much thought until now. Essentially, the insurance company would meet a person’s living expenses should something happen where the person could not earn any income (such as illness, etc). When my husband was in insurance many years ago, this kind of insurance was just starting to pop up. Part of the interest stems from the Baby Boomers now aging, and medical expenses are out of control. The insurance is there as a contingency plan, should anything happen where a person could not work for a time.

What do you think? Do you think income insurance is a good idea? Would you ever get it?

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