Now This IS a Scary StoryBy Stewardship Cents Newsletter, click here to subscribe. |
||
|
First a funny story
Our family's favorite time of year is the fall, enjoying the crisp air, apple picking, kid's sporting events and the beautiful foliage. We also like Halloween. When else can you dress up completely ridiculous and not have to explain a thing? I am always amazed how many neighbors you meet on trick or treat night. I am a big kid at heart and enjoy a good scare. For several years in a row I would scare my neighbor across the street with my Sasquatch mask. One year was epic. She had decided to stay inside her house because she learned from my prior 3 years' antics. Her mistake was she decided to sit at her kitchen table with her back to their sliding glass door, unlocked. With her husband's full permission, I quietly opened their door and perched my mask just over her left shoulder, waiting for her to turn her head just enough.... The scream was heard down the street even with doors closed!
Ok here is the real story
It's the scary story of an unprepared family, with a widow facing the recent death of a spouse, leaving a mortgage, debt and dependents to care for. We are not guaranteed tomorrow. Sickness or tragedy can sadly strike in the blink of an eye. When a financial mess is left behind, the normal period of grief and stress from the passing of a loved one can be greatly compounded spanning a prolonged duration.
Life Insurance is a basic and essential principle of financial planning.
No one likes to discuss death, I get that. However, it's important to be prepared for the uncertain. Maybe you say "I'm single and don't have any children, so I don't need life insurance." Think again. Just a small relatively inexpensive policy of $25,000 is a blessing to help your family with funeral expenses. It is true that some people reach a point in their lives that insurance is too expensive given their age or a particular health related issue. Others may have done a great job accumulating assets and living debt free that they then can self-insure through their savings. Unfortunately, the truth is many people if they even have insurance, are severely underinsured. Insurance can be affordable especially when you consider the risk for your spouse and kids of not having it.
Insurance can provide an income stream for your spouse, money to pay off the mortgage/other debts, funding for your children's college education and even a financial legacy to pass on.
What to look for...
Buy Term. Typically (except for unique situations), term life insurance could be your best option. It provides the most coverage at affordable level premiums and it can be re-shopped at any time for better rates. Term also helps free up cash you could have spent elsewhere, such as investing.
Choose the proper coverage. The proper amount of coverage on you and your spouse's life should be calculated based on your needs not simply a multiple of your current salary or on an employer's group plan. It is flexible, but has to be selected appropriately.
Choose the right provider. Life Insurance is offered everywhere from automobile clubs to alumni associations. However, choose a qualified professional who will consider your unique situation and full financial goals.
Keep your coverage updated. With new babies, a new mortgage, job change or retirement insurance plans need to be revised.
For more informaton on choosing insurance click here
Any opinions are those of Luke A Fields, CFP® and not necessarily those of RJFS or Raymond James.
|
|
|
