Do you have people, like a child or a spouse, who depend on your income?
Then, it’s a no-brainer. If you don’t have sufficient assets or savings, you NEED life insurance. However, there are about 11 million households (with minor children) that don’t have life insurance. And many that do have it, don’t have enough coverage.
Since the recession, life sales have been steadily declining. Many families state that they can not afford life insurance. But why?
Term life insurance premiums are at a fifty-year low. What does that mean? More coverage for less money; and your family is protected from financial ruin in the event the breadwinner dies while others are still counting on his income.
Life insurance should be an intricate part of a family’s financial picture. And thanks to the low-cost of term insurance, families can afford it–because they can’t afford to be without it.
Out of 100 people who starts working at the age of 25, by the age 65:
* 1% are wealthy
* 4% have adequate capital stowed away for retirement
* 3% are still working
* 63% are dependent on Social Security, friends, relatives or charity.
* 29% are dead.
Close to home:
Yesterday my sister and I were having a conversation about a “friend”. (We’ll call her, “Harriet”.)
In the conversation, my sister started telling how, Harriet was always in a bind, and never had enough money to pay her bills.
Now, I found this interesting because Harriet had a full-time job (that’s she’s had a few years) plus she’s been in the workforce since I can remember (30+ years). So, I asked my sister, “How can she not have enough money to pay her bills? What does she do with her money?”
My sister then said, “If Harriet works 40 hours (plus some overtime) every week, barring any emergencies, she would be $50-$60 short on her living expenses. Sometimes, she can’t even afford to get her prescriptions.”
So after further digging, I found out Harriet only has the “basic” living expenses- rent, utilities, food, gas- plus cable. Now truthfully, that doesn’t seem like a lot, but something just didn’t make sense to me.
Why would someone keep working at a job that leaves you “in the hole” every month? Well, there’s a
logical explanation. Harriet is set to retire in a couple of years. So, she’s want to “hang on” to draw her retirement benefits.
We all know the retirement pay is only a percentage of your regular pay, so I just naturally assumed that Harriet was going to retire from Job A and seek work at Job B. Apparently, that’s not the plan. She plans to fully retire.
Is Something Wrong Here? Am I the only someone who sees disaster on the horizon?
At full pay and benefits, you are coming up short. How are you going to manage to make ends meet with less income? Well, apparently that’s the million dollar question— still unanswered.
I hope Harriet has a lot of good (rich) friends and knows a lot of charities. Because without a different plan, she’s going to need them.