In this time of economic strife, insurance is especially important, namely term life insurance. This type of insurance can be invaluable for families with little disposable income after a family member dies.

Most experts agree that when deciding on the terms of a term life policy, the value should be at least 10 times the amount of your gross salary. Of course, this is a generic advisement, but if you can afford it, 20 times your annual salary can keep your family’s lifestyle at the same level as they were before your loss.

When buying life insurance, certain other conditions should also be taken into consideration such as any pensions that will be received as well as social security benefits that the survivor will collect. In addition, a mobile or portable life insurance policy is of vital importance so that you can take the policy with you if you were to lose your job or change careers.

As for other kinds of insurance that are must-haves in a declining economy, individual disability insurance can be imperative in the event that you become disabled and can no longer work. Usually larger companies provide this type of coverage, protecting your income and allowing you to receive 65 percent to 70 percent of your salary. However, after taxes, the actual income you will receive is closer to only 45 percent, so keep this in mind when you consider whether or not your coverage will realistically support you in time of crisis.

Any other recommendations on essential insurance policies for an economy heading into a downturn?