Thursday, April 24, 2014

Don't Make It a Sad Day for Everybody

As I describe in my book, "Meet Wally Street. The Reason You're Stupid.", "don't make it a sad day for everybody" when you pass away. This was one of my dad's favorite sayings. He was right about one thing. Most people have way too little life insurance. When you make the decision to buy life insurance, you are making a good decision.

Recently, I had the honor and privilege of helping a young, married father of three obtain some life insurance on himself. He is the primary breadwinner in the family. Now, how much life insurance do you think he should have on himself? Perhaps, $250,000, $500,000, $750,000 or $1,000,000? I didn't even have to tell him. He knew that the best answer was $1,000,000. You see, he was thinking of something other than himself. He thought for a moment about what his family's life would be like without him. He realized that since he is the breadwinner and his wife takes care of the kids, then he had to protect his family from being destitute.

Sure, he could have forgone the $1,000,000 death benefit and chosen $250,000 or less to save money, but this would have hurt his family. His wife would have to get a job and we all know how easy that is today, don't we?

In fact, I know a professional who posted a job on Craig's List for a $10 per hour job and received over 70 applicants in just a couple of days. Do you really think your spouse, who is a housewife and hasn't worked for several years, can easily go get a job? If so, then my friend you and me need to have a heart-to-heart talk. Unfortunately, the odds are that she would have a very difficult time finding a job. Even a $10 per hour job, believe it or not. For those 70 people who applied for that job, 69 of them did not get the job. When you spouse is thrown into a dark pool with 70 other people, please tell me realistically what are her chances? I can tell you. Slim to none. It doesn't matter if she has a college degree. She has been out of the workplace too long. HR people are brutal when it comes to going over resumes. They are looking for the most experienced and highly skilled person that they can find. Unfortunately, a housewife who hasn't worked anywhere in four or five years, even one with a college degree, is not going to be at the top of an HR person's list. You know that I am right about this fact. Perhaps, you might want to rethink that life insurance issue again. Term insurance for a young guy is nothing. There is simply no excuse for not having life insurance.

It was so refreshing to see a young man care so much about his family that he would buy $1,000,000 of death benefit to make sure that they were taken care of if something were to happen to him. This is what life insurance is all about. Taking care of your family.

Do you care enough about your family to buy $1,000,000 worth of life insurance? I hope that you do.