Saturday, June 2, 2012

Life Insurance Review

As we start to make changes in our lives I wanted to mention something that is overlooked sometimes which is life insurance.  It is not a pleasant subject to think about but is is something that I will be going over again here personally since we are increasing our debt responsibilities by building our new home.  I am not an insurance salesperson so I am not trying to push anything.  I believe that there is good and bad life insurance with term life being the good kind to have.  Please read this article from Clark Howard if you have a few minutes:

http://www.clarkhoward.com/news/clark-howard/insurance/buy-level-term-life-insurance-help-dependents-even/nFp7/

I do not mean to be macabre, but life is not always planed and executed like a house.  Personally I lost my mother when I was very young as a baby, but I was very lucky to have a good and loving family to raise me. 

Please consider what it would take to keep your family comfortable at least financially in the event that you are not with them in physical form.  It is something to consider for both those working and earning a wage and those who are working at home with the family.  A loss of either would be devastating personally which is obvious, but the loss of either can have a huge financial toll as well that must be accounted for.

Certainly there is no one right way to protect against unforeseen events like this, but if you are able to take the opportunity to review your options that is what I am hoping for.

Best Regards,
Thomas

6 comments:

  1. This is something my husband and I talked about when we started building our house. The thought of losing him is unbearable. The thought of losing him and the dream house we are building together is even worse. He works for the government and it turns out they have great life insurance. I wouldn't have to worry about losing our home. This is something EVERYONE should discuss even though it is not a pleasant conversation.

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    1. That is good that they offer coverage that is a nice benefit. I get some coverage though my employer but I also purchase additional coverage as well on my own.

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  2. Funny you posted this. My husband is about to start med school, so he will have no actual income for 4 years, and a very very modest (for a doctor) income for about 3-6 years during residency and fellowship before he's finally making good money. So our parents are gifting us each a 1 million dollar 10 year term policy. We have 3-yr-old triplets whom we want protected, so this really nice to have. We just signed paperwork the other day and are awaiting the whole health work-up now. Next step is a will - even harder to think about than life insurance.

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    1. Agreed, a will can be a difficult process to think about especially if you have children. I strongly urge everyone to get a will or review an existing one otherwise the state will decide who will provide the care for your kids.

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  3. Definitely a good reminder Thomas! Plus if you don't have it already, probably a good time to discuss with your insurance company as you secure your home owners insurance. You can usually get a multi-policy discount.

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    1. Good point about the possibility of combining insurance policies. Just make sure to shop around and also make sure that the company is highly rated.

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