Friday, April 20, 2012

My Thoughts on Life Insurance and A New Goal

Several years ago, I sat down with an MLM insurance company rep.  I know what you're thinking.  "Girl, run.  It's MLM!"  Well, it was one of the best things I ever did.  This is where I learned about paying off debt with the snowball method.  I also learned the importance of getting life insurance.  Best of all, they explained the difference between whole life insurance and term life insurance.  It was the beginning of a new awakening for me.  At the time I didn't think I had a need for a lot of the products they offered, but boy did Sept. 11, 2001 change my perspective...

Not only was Sept. 11, 2001 one of the most traumatic days in U.S. history, it was the day I went into labor.  My son was stubbornly born Sept. 13, 2001.  That week I learned that my neighbor was missing.  She was on one of the top floors of the towers.  Sadly, she didn't make it.  Before this tragic event, I had bumped into her at the supermarket.  She told me she had switched careers, was finishing up her degree and was now handling estate planning for a prestigious firm.  She told me that she had so much life insurance that she would become a millionaire if her husband passed.  That stayed with me, but not for the reasons you think.

Two years later, my son was diagnosed with PDD-Nos on the autism spectrum.  He is now 10 and his progress is amazing, but he is not like my other kids.  As I get older and sicker every day, I am looking into term life insurance because someone will need to care for him and the other kids.  I don't want a financial burden on anyone that would be caring for any of my kids.  Several of the kids say that they want to care for their brother, but that's now.  What happens when the conversation involves husbands and wives?

This is a conversation I have over and over again with countless parents.  Are we prepared?  At this time, I can't afford premiums for whole insurance.   I know what you're thinking, whole insurance has some value.  Term life insurance will end when you stop the payments.  I think some life insurance is better than nothing at all.  I've seen tragedies happen to people and how it devastates them in every way, especially financially.  Just like I have an action plan in case of an emergency like Sept. 11, I need to plan for this.  His Dad is still in denial.  He lives in the here and now.  I'm lucky I have gotten him to open a checking acct, a 401K and build credit.  We're talking baby steps people!!  He has insurance from his job, but that would not be enough.  I don't know if it's because we both come from "old school" hispanic backgrounds.  They don't like to talk about death.  (Fortunately, my parents became Americanized and have both life insurance and their burial plots taken care of).  Not dealing with death doesn't mean it's not going to happen.  It just means you'll be caught unprepared and it can destroy the life you have built.

This is what I have been thinking about lately.  So, I have decided to payoff the mortgage as quickly as possible.  I am going to post what is owed and the payments that are made.  I think this will be a big encouragement and inspiration to complete the goal.  My amazon and hubpages income has increased, so I will start adding that to the payments.  I'll keep you posted on the new income streams I have found, so you can benefit too!


Wites and Kapetan PA said...

I was having second thoughts on getting a life insurance as well. You need to know the entire coverage of it before you get one. Best of luck on your getting out of debt goal. I know a firm that can help you with that, it's Debt settlement by wites & kapetan

Superannuation perth said...

I know how you guys feel. Getting life insurance is a double edged sword. You really have to know what you're getting into first. Shopping around and looking for the best deals is always a good idea.