Get Life Insurance & a Will!

When people say s**t happens, its true. Included in that pile of s**t is death. Yes, death and taxes are for certain, according to Ben Franklin. So, to prevent the financial stresses that come with it, protect yourself by not only getting life insurance but to encourage your loved ones to enroll as well to keep you from inheriting their financial woes after death.

So, to keep your loved ones from scrambling to handle your bizness, buy term insurance. They give you the largest death benefit in relation to what you pay in premium every month, and plus, the younger you are, the lower your premiums, unless you have some serious preexisting health situations, then that’s another story. My job offers life insurance that covers up to my worth in current salary. However, the best option is to have coverage of five to ten times your salary. Yes, I said Life Insurance coverage = (5*your salary) through (10*your salary), for you that need a more graphical illustration. Of course, if you have more family dependants or more debt (like outrageous loans or something) the more you need to kick up a notch in your coverage.

Although once you’re dead and gone, you could care less about maxing your dollar dollar bills ya’ll. But if you have loved ones, this tip could help both ways. If a loved one passes away, you might be left with their financial burdens and vice versa. So inform yourself and your loved ones about life insurance.

Get disability insurance.

I think this is one of the most overlooked options out there among young people (including myself!). But what happens if you become injured or too sick too work? Well, if it happens on the job, you might get a few pennies thrown at you by way of Workman’s Compensation, but what if you get hurt popping and locking at your cousin’s wedding, or you ate a chalupa with scallions at Taco Bell and became infested with E.Coli. Waddya do? If you have disability insurance, you’re up to snuff because they pay around 45 to 60% of your wages. If your pair that with your emergency fund, you wont lose the house of that new Hybrid you waited 8months to get.

Write a will

Once you get your life and disability insurance out of the way, write a will.

Once again, you might be a regular run of the mill worker like myself, so your house is probably not going to be featured on MTV Cribs. But you still have assets! To avoid probate and all sorts of other problems, please write a will.

Yes, this is a depressing segment, but trust me, it’s worth it. When you write your will, you keep the courts at arms length, by declaring who gets what. There are software packages such as those offered by Quicken that make it fast and easy if your assets are under 1 or 2 mil.



Source: (CNNMoney, my brains)

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Labels: finance