Life Insurance is Not for You

Do you ever think about this?

Had a friend ask me this great question. Many people think about these things, but don’t actually ask it.

“As I as driving to work my mind was thinking about insurance. What happens if you get a terminal illness and eventually have to stop work. How can you prepare for the unimaginable with insurance strategies?”

So, your health insurance covers the medical bills. You have that through work so you are good there.

You should have Disability Insurance to cover the loss of income. If you can get it cheap through work, then get both Short Term Disability (covering your loss of income from day 7 though 12 weeks) as well as Long Term Disability (covering your lost income from 13 weeks to around age 65 or so). Some companies don’t offer short term, but you should be able to get Long Term Disability through most employers. Ask HR what they offer and then let me look over it with you and Ill give you advice. Almost 100% of the time, the best option is through your work. Very rarely is it going to make sense to get one outside of work, if they are offering one, unless you are making over $120k per year. If you are at that point, then we need to talk about something to supplement the coverage from work since most work policies only cover wages up to about $120,000 per year.

Last, once you pass away, that is where you need 12-18 times your annual income in good inexpensive term life insurance to let your family keep living the lifestyle they are used to living and not require your wife to marry quickly just to replace your income!

So, call HR, get the info from them as to what the company offers, then call me and Ill buy breakfast/lunch and we can talk about which options make sense for you.