Last week, one of my wife's employees lost her cousin to a heart attack at 41 years of age.
He left a wife and three children--the youngest just an infant. She told me she thought he was in good shape. He wasn't overweight, but he did drink, and like everyone else in the family, he smoked. I am certainly not here to judge the man on his preferences even though I don't smoke and haven't ever and just drink red wine. His lifestyle was none of my business and actually none of anybody's business. The problem was he was just getting around to look into life insurance. He had an appointment the week after he died. Too late! He left a family destitute that could have been in decent shape. If he had traded the cigarettes for life insurance, he might be alive. With a policy in place, his family would have had a chance at a decent life, financially speaking.
Insurance is the best bet in the worId. When you are young and raising a family you need to protect them if you are the bread winner just in case you go prematurely. No one should be that selfish or unprepared, and if they are, they really shouldn't have a family. Life insurance is a must, and it doesn't matter if you can't afford much. $100,000 would have been a life saver for the aforementioned family, and it would have cost pennies a day. You really need at least 3 years of income as a safe amount for your family, but any amount is better than none. One of the biggest problems in any type of planning is the lack of proper insurance.
The three most important insurance coverages for an individual are life, health and disability.
After those comes long term care which I took out in my 50's and hope I never have to use. I have heard so many people say that they don't won't to be a burden on their family when they grow old. Well, if you are one of those people, here is the way to "put your money where your mouth is".
If you own a house or car, you need homeowners insurance and/ or automobile insurance.
Everyone who can should purchase a liability umbrella to give them greater liability limits than you will have on your home and auto policies. A friend of mine decided to help his neighbor patch his roof, and unfortunately, he fell off the two stories onto the cement and lived. He actually will recover to probably 90% of his former health and has a good chance to live a normal, productive life. His hospital bills, not the doctors, are over $300,000 and rising, and he will be off of work for over a year. There is a world of worry accompanying the accident by all the parties concerned. They estimate the final bill will be over $1 million.
Roger Schlesinger's Mortgage Minute is heard on hundreds of radio stations and daily on the Hugh Hewitt radio show and Michael Medved shows. Roger interacts with his hosts and explores the complicated financial markets in order to enlighten his listeners and direct them along their own unique road to financial freedom.
Be the first to read Roger Schlesinger's column. Sign up today and receive Townhall.com delivered each morning to your inbox.