Being Smart in a Tough Credit Market

Current economies are such that you run the risk of being given the pink slip irrespective of whether a recession is in progress or not. If your job is found in the least bit redundant, the chances of losing it are quite high. In the bargain, almost all your investments will also suffer. Most people make investments based on their income. The larger the income, the bigger the investment is the norm. Car and loan mortgages are some of the biggest worries for people who have been laid off.

There is however a way to insulation yourself and that is with a layoff assurance plan. Technically these are a form of safety nets whereby a consumer is able to return something that he can no longer afford. Depending on company policy your money may be returned to you or the payment for the product will be deferred till you can afford it once again.

But like with any form of assurance you will need to go through the fine print in detail. Layoff assurance plans are generally provided by retail organizations. One of the main reasons for doing this is to push sales despite slow market. It will push profit margins up for the company. When you get into such plans you have to understand all the terms and conditions that are applicable. They may seem good on paper, but you have to understand their implications. This however does not mean that every kind of assurance is out to get you. What you primarily have to look for are the exceptions. Every assurance policy will work in some details that will prevent you from collecting on the assurance. Find out what these are and how it could work in your case. Only when you are completely satisfied should you venture further with it.

The idea of this policy is to insulate yourself from liabilities in the case of losing your job. But at the time of contemplating the purchase do think about how strong those possibilities are. Should you be absolutely sure of losing your job, it would be a good idea to just refrain from making a big ticket purchase.

When you are settling on your plan make sure that you understand it as a value addition and not just a protection plan. Make sure that you do all the groundwork needed to see if the policy is comprehensive or if there is another entity offering you a better deal.

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