Apr 4, 2020 4 min read

First, because of my age and medical conditions, I would like to thank all of our governments – federal, state and local – for their efforts to care for us equally. It is clear not all countries have the same respect for human life.

I am writing from my basement, where I have worked for the past 14 days. Information has changed hourly and trying to be helpful and relevant is not always easy. Let me share what I know today and how you should respond.

Unemployment, particularly in the service industry, is going to be a major problem in our economy. If you have lost a job because of the coronavirus, you need to sign up for benefits. Unemployment benefits were increased under the “Cares Act,” signed last week by President Donald Trump. At this same time, businesses are hiring so they can continue to provide life-sustaining services, so it may be time for a new career.

Make sure you filed a 2018 and 2019 federal tax return. The filing deadline has been extended to July 15. Because of the Cares Act, most individuals earning less than $75,000 can expect a one-time cash payment of $1,200. Married couples would each receive a check and families would get $500 per child.

That means a family of four earning less than $150,000 can expect $3,400. The checks will start to phase down after that, and disappear for people making more than $99,000 and couples making more than $198,000.

Typically, self-employed people, freelancers and contractors can’t apply for unemployment. The Cares Act created a new, temporary Pandemic Unemployment Assistance program through the end of this year to help people who lose work as a direct result of the public health emergency.

Most banks are offering loan deferral programs, which can delay payment of loans (no principle or interest payments). A deferment will not affect your credit worthiness or future borrowings. Deferred payments will be added to the end of the loan.

Credit card payments also can be deferred by some banks. If you are having problems, contact your bank and see what programs they are offering. Understand, this is not free money; it just delays the payment.

For immediate sources of cash, contact your life insurance company. If you have any whole life insurance policies, or a universal life insurance policy, there are cash values that can be withdrawn or borrowed against. Make sure you set up a plan to repay these funds for the next emergency.

Most major insurance companies are offering some type of delayed cancellations. These programs will keep your policies in force if you miss a payment. If you can make your payments, continue to do so.

If you are having a problems, contact your agent and see what is available. Also, ask to review your coverages and ratings. If you are not working, this may affect your auto policies and reduce the premium you are paying. Raising deductibles may not seem like good advice when you are short of money, but it may be better than having no coverage. Ask about monthly billing accounts to spread out large premiums.

We are a community caring for each other. Organizations like the United Way, Washington County Community Foundation, City Mission and local churches are all ready to help.

This is a unique time. Do not be ashamed to ask for help. If you do not need help, don’t be afraid to give or volunteer.

Stay home be safe. We will get through this.

Bob Hollick is a State Farm Insurance agent based in Washington.

To submit columns on financial planning, investing or business-related matters, email Rick Shrum at rshrum@observer-reporter.com.