What’s On Your Key Chain?

Take out your key chain and put it on the table. You’ll see the house key. Do you have homeowners insurance?

Next, you’ll see the car key and think, “My car is insured, too?” You may have some other items such as a small picture of your child, or something your child made for you. Ask yourself if your child has health insurance. And, you might have the key to a boat, motorcycle or family cabin up at the lake. Are these insured too?

Of course they are. If you think about it, your entire life is on that key ring—in fact, it is your life. And considering that the ring is what holds everything together, shouldn’t it be insured too?

People knows that they need insurance for unforeseen expenses such as a car accident or a house fire. But so often they ignore the ultimate unforeseen expense and forget to take out a life insurance policy.

In this 1% interest rate environment, everyone you know is underinsured. Think about it. In a 1% interest rate environment, it takes $5,000,000 of life insurance to protect $50,000 of income. Even in a 5% interest environment, it takes $1,000,000. I recently met with a 45 year old widow. She had been a stay at home mom with 2 daughters. Her husband made $250,000 per year. When he died suddenly, she thought she would be fine with his $1,000,000 life insurance policy. Guess what? She is not fine! In this low interest rate environment, she is going to have to try to live on $30,000 to $40,000 per year!  The difference between a family that survives an untimely death and one that doesn’t is typically the miracle of life insurance.

Should you purchase permanent or term insurance? Well, the only policy that matters is the one that is in force on the day you die. Since less than 1% of term policies ever pay a death claim, they may not be the best choice. A good permanent policy should be the foundation for any financial plan. However, term can be great to supplement the permanent coverage.  The key is to own enough life insurance so your family will be able to continue their standard of living if something should happen to you.

How will you protect everything that your keychain represents if you pass away unexpectedly? With proper planning and a large permanent life insurance policy, you can have peace of mind knowing that your family will be safe and secure well after you are gone.

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About #nofeeslender

Having invested more than a decade of solid experience in the Real Estate Mortgage Industry (in Retail Banking, Retail Brokerage and Wholesale Banking Lending) along with countless years of cutting-edge, high-technology real estate computer system knowledge, I gratuitously provide my Valued Clients--both "Property Virgins" and Long-Term "Real Estate Gurus"--with informative, analytical, technological, resourceful and expert advice that help them make the best informed decisions for their own unique situations to reach their mortgage planning goals. Specialties:"I specialize in helping individuals like you and family like yours find, qualify for and own a home of their dream with little or no money down, even with less than perfect credit!"
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