This is one of the most powerful questions for a family to answer concerning every income earner in the home. It is certain that the death of any member of the family is a tragedy but the total loss of your income to the household is a second lingering tragedy that is felt for decades by the very love ones you went to work to support every day.
The American family has a very serious problem. Many fathers and mothers think they are properly insured and that the insurance policies they personally own or the ones they have at work are enough to cover their families. This assumption is not only wrong but it is dangerous because your whole family is counting on you knowing better and doing better to protect them. There are inexpensive fixes that must be put in place today so that your family can continue to thrive and grow even if you die or are totally disabled..
What is the proper amount of insurance?
The proper amount of insurance is the amount of insurance that pays off all debt and TOTALLY replaces your income. If you earn $80,000.00 you need an amount of insurance that will pay $80,000.00 per year of more forever. Do not count insurance you have through your job because you may not always have that job. In addition the longer you go without owning your own policy the older you get and the more expensive you will be to insure. Insurance favors the young and healthy. own the solution to your problem.
If you have 1.5 to 2 million in insurance (do not buy it in term unless it is a special term that converts to permanent insurance) your family can pay off its’ debt and then put the balance in an annuity that will pay 5% a year. If placed in trust it can pay $80,000.00 through your spouses life time, your kids life time, and your grand children’s life time without ever touching the principal. A healthy 40 year old could purchase this for about $200.00 per month. If your spouse did the same and you taught your children to do the same when they became adults, your grandchildren will have some serious trust funds. And it can all be created from very little money.
Would you pay $200.00 per month to know that your family would get $80,000.00 per year forever?
We pay $600.00 per month car notes, $2500.00 mortgage payments, 1500.00 per month tuition for elementary school in some cases. Why are we not putting things in place in case the worse happens? Every Father , Mother, and responsible adult should put an income replacement plan in place right now. It’s not just a policy in the right amount but a written plan that gives instructions to make the money do what is supposed to do.
I often hear spouses say that if something happens to them the house will be paid off and that the other spouse and the children will be ok. The truth is they will not be ok losing all of that income. Many things are no longer possible now that your income no longer exist. Things will continue to get more expensive and your money will buy less everyday. When you were born gas cost less than one dollar per gallon. Now it’s almost four dollars per gallon. Don’t leave a family with a paid off house and broke.
It’s not fair and its not why you are working so hard NOW
I did a survey of 20 friends and associates who earn over $150,000.00 and live in homes with debt over $300,000.00. Most had their children in private schools paying between $600.00 to $2000.00 per month. Not one had a policy worth more than $500,000.00. These are all great parents that love and care for their amazing children but if something happened to them or their spouse their children’s life styles would disappear within two years. I know that is not what they want for their families. So I’m helping to change that now!
You will need help doing the right thing affordably and I can refer you to excellent resources. 866-392-5805.
What happens to my family financially if something happens to me? They will be debt free and still have my total income coming in every year for the rest of their lives. If you can’t say that you should be calling me now.
Wishing you Wealth Wellness and Wisdom