Life insurance
You have probably learned a few things from the pandemic, so you should think twice before buying life insurance, as it is still affected by the rates of inflation from the risk of coronavirus, according to Kasey Ring, owner of Upward Personal Finance.
Even if the policy might seem reasonable, it is an added monthly expense that people should consider to streamline as much as they can. “Adding an expensive premium to your bills isn’t wise, especially when you need money to live today.”
Michael Bonebrights, the consumer analyst with DealNews, warned. “Whole life insurance is a particularly bad decision. It’s an investment product, so life insurance has the steepest premiums, usually seven to 10 times the price of term life.”
New car
Don’t rush into signing a new monthly bill, even if a recession lowers car prices. “You wouldn’t want to commit to a car payment, or tie up all your cash, especially in times of economic uncertainty. Instead, keep driving your clunker for a while.” as Nathan Hamilton, cofounder of The Ascent, recommends. Timothy Wiedman,
New House
Just like cars, houses are getting cheaper and cheaper during a recession, thanks to falling demand. More people are bound to make the big move, so prices fall to entice the few buyers that remained.
“You will need a job to get a mortgage, and you might have a good one that you’ll feel is recession-proof, but you never know.” Jack Choros, the finance writer with CPI Inflation Calculator, warned.
“Nowadays, banks and governments might also institute all kinds of loan programs and stimulus packages that might send rates all the way up and down unpredictably.” Given all that, he advised particular caution with anything related to adjustable rate mortgages.
