By Dave Ramsey
I took a call on The Dave Ramsey Show the other day from a father who wanted to know how to plan for the care of his special-needs daughter after he dies. I told him pretty much what I would tell any parent, but I really respected the fact that he was being so careful in planning for his little girl.
Why is it that parents of special-needs children are so deliberate in their estate planning while parents with healthy children are so sloppy about it? Will your kid’s needs matter less if something happens to you?
Oh, I’m sorry. Did I just guilt-trip you into getting some good term life insurance and writing out a will? Good! Your family needs you. They’re counting on you to take care of them—whether you’re dead or alive.
Having the right insurance is a matter of personal responsibility. If you’re more concerned about getting the hottest new cell phone or video game than you are about taking care of your family, then you need to have your tail kicked.
Seriously! Get your term life insurance! Monthly premiums for $500,000 to $1 million worth of term life insurance for a healthy 30-year-old cost about as much as a pizza. If you don’t believe me, go check the rates for yourself at Zander Insurance, the place I recommend for term life insurance.
You need coverage equal to 10 times your annual income. So if you make $50,000, you’ll need $500,000 in coverage. Remember, the goal of life insurance is to replace your income. If your family invests the $500,000 at 10% per year, it will generate $50,000 a year, and your family won’t be stuck with no annual income while they pick up the pieces of their life.
This isn’t rocket science, folks. This is about being intentional. One way you say “I love you” to your family is to put your basic estate plan in place. I don’t care if you think it’s boring; this just might be the most romantic thing you could ever do for your spouse.
Note from Dave’s team: Having the right insurance coverage for all areas of your life is just as important as having enough life insurance. Dave recommends Zander Insurance to help you set up term life insurance. Our insurance Endorsed Local Providers can help you find excellent home, auto, health and long-term care insurance. You’ll get great deals and great service. Get in touch with your ELP today.
Get your act—and your papers—together! Learn how to collect your important documents for your family in what we call the Legacy Drawer.
Find local professionals that Dave recommends for: