Insurance is shifting the risk to someone or something that is more likely to be able to handle the catastrophic event. People often insure their life through life insurance, their income through disability insurance, their business through business overhead insurance, etc.
Last week, I wrote about updating my life insurance and while it isn’t finalized yet revisiting the topic on a very personal level rather than for a faceless client has reinvigorated my feelings on the subject. Granted, I work with the product, daily, but being in the in the middle of my own protection planning has really reminded me that the main purpose of life insurance shouldn’t be forgotten – PROTECT YOUR CHILDREN SHOULD YOU PREMATURELY DIE.
For most relatively healthy young adults term life insurance is cheap. So, if you are raising children, are relatively healthy, are relatively young and you don’t at least have some life insurance you are likely an asshole. Sounds harsh? It is meant to be.
Obviously, it is true that there are some people who can’t afford it, but at the prices I received I will only buy that if you don’t do any of the following:
- Own a smart phone plan with one of the big 4 carriers – Is unlimited texting more important than protecting your children in case of death?
- Stop at Starbucks/Dunks once a week (or more) – My $1,000,000 term policy costs $44/month. So if you are stopping at Starbucks once a week you are drinking away a $250K – $500K policy.
- Your Gym Membership is $80+/month. Join a cheaper gym and protect your children damn it.
- Don’t ever eat out. Ever.
These are just 4 quick ones that I can think of that directly change whether you can “afford” to protect your children should something happen to you.