I find it amazing that we all fear discussing life insurance. I bought my first policy when I was 18 because my parents taught me the importance of making sure that someone else wasn’t left with the cost of putting me in the ground when the time came. A few years ago, I started to sell the stuff. I’m no longer in that industry but I still very much believe in insurance and risk management.
What level of risk are you willing to assume? What can be done to manage your risk?
The last time you reviewed your risk management plan, did your adviser talk to you about child riders for your children under 18?
Did you talk about the costs of a prolonged illness?
How much will it cost if you have to take extended periods of time off work to care for a sick child or spouse?
I can tell you from personal experience that it costs more than $10,000 these days to bury someone. That’s what the value of most child riders is, $10,000. We paid just over $2/month for that rider.
Now we have to pay the funeral home every month to make up the difference. That means a monthly reminder that we have lost a son. That doesn’t even touch the lost income that we experienced while he fought cancer for two years. I can’t imagine how much worse it would have been had there not been any insurance at all.
Had our son survived, he would have been able to convert that rider into life insurance for him to protect his family if something happened later. All because we had the child rider. That was specific to the policy we had and you need to discuss that with your adviser, not all policies are created equal.
As you meet with your adviser during your tax planning this year, make sure you ask about risk management. It may be the most important part of this planning session!
Make it a great day,
P.S. What am I thankful for today? I’m thankful we had such a wonderful son. I’m thankful the rest of my children are making the most of every day now. I’m thankful for my faith that helps me get through these times.
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