Responsible people should do an analysis of what their life is worth in financial terms. I’m not talking about net worth which is you assets minus your debts. That is totally another discussion. For the sake of this discussion let’s calculate the value of your life the way an attorney would if you had been accidentally killed and someone was at fault.
An attorney is going to look at your age of death and how many years you could have been expected to work until retirement. You are 40 years of age and expected to work until age 65. Now multiply that number by your current salary, $65,000.00. Normally they are also going to add something in for inflation but we will leave that out for now.
Life valuation by income = (years until retirement) * (current income)
By this calculation (25yrs * $65,000.00) = $1,625,000.00 is where an attorney would start the lawsuit against the responsible party. In a court your life is worth at least$1,625,000.00 but people are walking around with little to no insurance to protect their incomes. Who is left bear the financial pain and loss of $65,000.00 a year, in addition to the emotional loss? Your spouse and your kids, that’s who!
Please don’t tell me you have insurance on your job that you don’t plan to have the rest of your life. This is big mistake. People change jobs every three years on average in the United States. Change jobs or get fired and your family’s protection goes way. You need to own your family’s protection. The older you get the harder it is to qualify and the more expensive the cost of insurance. Get a permanent plan while you are young.
Don’t tell me money is the issue because money isn’t the issue when it comes to the house you live in, the car you drive, or the school your kids go to. It isn’t an issue when it comes to the clothing you wear or the lifestyle you live. You just don’t know how little it really cost to properly protect your income for your family.
Even those with insurance walk around with too little to meet the family’s needs and the wrong type of policy. That’s tomorrow’s lesson.
For today make up your mind that you are going to find out how best to protect your income and your spouse’s income if you have one. Protecting your income for your family is smart and practical and not doing so in negligent or your part.
I’m going to refer you to the smartest guy I know in the world of finance to help you figure out how to put together an affordable plan to really cover your family. The way you know you have the right plan is that it works weather you live to 100, get disabled and can’t work, or die tomorrow, you and your family still have your income and the security it provided.
Call Tony Brayboy of Matrix Wealth Management LLC and talk to him about your family’s needs and how to replace your household income between now and retirement. Tell him I sent you and get an hour consultation free of charge (normally $250.00 an hour).
Manager of Wealth
Wealth Wellness Wisdom