Just after Daniel was born - and I mean like within a month - I had a small life insurance policy on him. It's like $10 a month, and just carries enough to cover the exorbitant cost of a funeral.
Morbid? I prefer realistic. And why, a week before Christmas, am I telling you this?
We've had a tragic death in the family. My favorite uncle's only daughter passed away - we think of natural causes - at her college in Eastern Michigan. (www.video.woodtv.com)
And now her parents - business owners, smart, funny, loving people, are faced with not only the loss of their daughter, but at least a week of having their small-town business closed and having to deal with the cost of an autopsy and funeral. For anyone living paycheck-to-paycheck (what family with kids isn't) this could be a back-breaker.
It's certainly been a heartbreaker.
--Misty
Monday, December 18, 2006
life insurance for your babies
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1 comment:
Misty, that is so sad, especially considering the time of year. However, what you are suggesting, specifically, is a financial mistake. Also, your statement about families with kids living paycheck to paycheck ("what family isn't") is wrong.
First, to buy a life insurance policy on a child is not neccessary. You should make sure you have enough to bury them they passed away, BUT...you should just get a "rider" on your life insurance policy. It's less expensive than what your suggesting and doesn't require you to purchase a BAD product like "cash value insurace".
I could go into greater detail with the insurace issue and why parents that care for their families should have a good 15 to 20 year renewable TERM Life Insurance policy, but that would be too much for this reply. Check out DaveRamsey.com for all the info you could ask for regarding wise financial decisions.
Second, the paycheck to paycheck families are living that way because of bad decisions. It has nothing to do with kids. The average family today (70% in fact) IS living paycheck to paycheck. That percentage is 80% in more upscale neighborhoods. Suprising? Yes...and sad. The problem stems from payments. Car payments, credit card payments, 90 days same as cash payments, etc. The average car payment is now $439 a month. That would buy some a ton of term life insurance. If the family has two cars.........jeez! Adults need to grow up, quit borrowing money, pay cash or don't buy it.
There are millions of families, many here in the middle Georgia area in the process of having a Total Money Makeover. In 16 weeks the average family has a POSITIVE change in their net worth of over $8000 dollars. That's saving $1000 in cash (baby emergency fund) and getting rid of over $7000 in debt. It works, we've done it and know of thousands of others that are doing it too. Again, check out www.DaveRamsey.com for more information. Listen to his radio show on the internet for free. It'll cost you nothing and you'll learn so much. It'l life happening right in front of you and it's entertaining.
He's on about 300 stations (unfortunately not in Macon) around the US. He's on XM and Sirius satellite radio and the internet. His help and motivation has been priceless and it cost nothing to listen and learn.
Sorry to go on and on about that, but it's exciting to see a light at the end of the tunnel and know it's not an oncoming train. When those paycheck to paycheck families are sick and tired of being sick and tired, change is what they need. Dave Ramsey will help them change.
To summerize, don't buy a cash value policy on a child. Have them added as a rider to your term policy.
Second, don't live in this...."little man can't get ahead"..."your always gonna have a car payment"..."the rich get richer and the poor get poorer" world. If you keep doing stupid things you'll keep getting stupid results. People don't have to live paycheck to paycheck...even with kids and a 40K income. To change is not easy, but it's worth it.
We are perfect examples and I can show you others who are doing it. Listen for free...www.DaveRamsey.com
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