This is my second posting on Financial Success. The first
was Pay-yourself-first. Here are my three methods for financial success:
- Pay-yourself first
- Life insurance
- Personal financial planning
Term
life insurance is very affordable. The benefit can be chosen to help
provide funds to your spouse and family after you pass away. I have chosen a
10-year term and just need to renew or repurchase before it expires. The
long-term plan is to stop buying life insurance when we are self-insured from
the funds of the pay-yourself-first plan.
An alternative to 10-year is 20- or even 30-year term. With
a 30-year term, your family will be insured through the mortgage years and the
time to get your children educated. A 30-year term is more expensive in the
first 10 years, but the rate stays the same for all 30-years.
You may say, you don’t need life insurance, but anything can
happen, including a rare disease like Thrombotic Thrombocytopenic Purpura (TTP).
Once you have a known serious disease, you will no longer be insurable for a
future plan. This is another reason to consider 30-year term, as you will not
have to renew for 30 years regardless of your condition.
You may also have life insurance from work. This is great when
you are working, but has no value if you get laid-off.
Consider repurchasing your term life insurance about two
years before expiry. You want to collect new quotes when you haven’t had any
medical tests in the last 6 months. If you have had tests, then you will have
to run around gathering all of this information for your application. So if you
have had tests, just wait until they are 7 or 8 months in the past and then
start the repurchasing procedure. Don’t let your life insurance expire as one
day you may not be insurable.
From the insurance point of view, I am no longer insurable
meaning I cannot buy a new insurance policy. Luckily, I bought term life
insurance when I was healthy. This insurance is renewable, albeit it a higher
rate. My family is covered.
Thanks, Bruce.
@BruceFightsTTP
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