New study finds many would go outside of savings for unexpected expense

Oct 05, 2011

Saving money and life insurance are two important ways to fight against unexpected expenses.

An online poll from the National Foundation for Credit Counseling found that 64 percent of Americans would use a source other than their savings to pay for a $1,000 unplanned expense. In a worst case scenario situation, such as a death, life insurance could be helpful to suffering families with unexpected expenses.

About 36 percent of those who responded said they would go to their savings account for the expense, which the NFCC said is exactly what should be done to protect them. The remaining 64 percent would go to means such as pawning or selling assets, disregarding other monthly expenses, getting a cash advance, taking out a loan or borrowing from friends or family

"Without adequate savings, consumers have poor resolution choices when an emergency arises," said Gail Cunningham, spokesperson for NFCC. "People often say they can't afford to save, but the truth is they can't afford not to."

Globe Life and Accident Insurance Company said on their website that life insurance can provide security in knowing that if something happens, unexpected costs will not cripple a family. The company said there will be a positive influence on the future of loved ones with a good life insurance plan.

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