In my last blog post I told a murder story, so to stay in alignment with my doomsday streak, I think I’ll write about either you or I dying. That sounds much more interesting anyway! But really, all jokes aside, have you thought about it yet? Have you thought about what will happen to your family if something happens to you? I guess what I’m getting at here is, as an entrepreneur, do you have a life insurance policy?
Life Insurance for the Self Employed
I’m sort of a late starter when it comes to life insurance. I’ve only been to the doctors office once in the last decade or so, but recently, I started thinking about all the other factors of life that could happen, leaving my family in an extremely hard spot. Naturally, my solution is to continue building my business, which will continue to pay them monthly, even if I’m not around. But what if something happens to the company I work with, then what will they do? With the economy as sensitive as it has been in the past several years, anything could happen.
Thus, I need a backup plan, a “Just in Case” plan. They say that those who fail to plan, plan to fail, right? If the Lord should see fit to take me home before I reach a ripe old age, I want it to be said of me, “Dave was smart and had all his ducks in a row. His family won’t ever have to worry about money as long as they live!”
And it will be said my friends. It will be said.
So, the back up plan, should something happen to my business income, is a life insurance plan.
Just a little advice though, before you start slinging cash at an insurance company, first determine whether or not you really need an insurance plan. A good sign that you do, is whether or not you have a family. As a father and a provider, you would be an ignorant fool to think that those responsibilities are no longer yours once you leave this earth. It’s up to you to plan ahead for the well being of those children you brought into this world.
If you’re a single dude, living in a studio apartment and have no siblings or children, then you probably won’t really need an insurance policy. Unless you’re just a really nice guy and would like to leave the benefits to an orphanage or something. That would be pretty stellar of you actually. If this is your situation, that’s what I would do if I were you.
Types of Life Insurance Plans
If you don’t already know much about it, when you’re on the world wide web later on today looking for online life insurance quotes, you’ll see options for different types of plans. They are:
- Permanent. Permanent life insurance covers you through your lifetime and can accrue cash value, which can be tapped into.
- Term. Term life insurance policies are usually less of a commitment and more affordable. You’ve probably received ads for term life insurance in the mail offering you a low monthly rate for a certain amount of coverage. The cool thing about Term policies is they are only for a certain period of time, such as until your kids graduate from school.
In addition to permanent and term insurance policies, three common types of plans are whole life, universal life and variable universal life. When you begin searching for quotes, the sales rep can help you determine which is best for you.
Just to give a suggestion if you’re in the market, you may look into Modern Woodmen of America. My parents have a policy with them and they seem to offer a decent policy at a decent price. And they offer perks as well, such as free movies, dinners and other things they use as promotional activities. Every time they have one, my Mom invites the entire family. And hey, a free movie or dinner is a free movie or dinner. You know what I mean?
In conclusion, this year I turned a ripe old age of 36, and for some odd reason, getting older makes you reflect more on life in general. And I don’t know about you guys, but my life is my family. It would kill me again, even if I were already dead, to see them suffering financially in addition to the emotional hardships that come from the loss of their father.
Take the action now in setting up a life insurance backup plan to ensure that financial future of your family, with or without you. Better safe than sorry!
David Allred is the author and creator of CFW. David has been teaching entrepreneur minded people how to earn a full time income working from the comfort of home for nearly a decade.
Think about it. Never miss your kids’ events, set your own schedule, choose your own income and enjoy a lifestyle and income which most people only drool over!
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