How do you do that?  You do it by making sure that, should anything happen to you, the people you love and who count on you will not be left financially stranded.  

So, between now and year end (okay, I’ll give you to mid-January), track down your insurance agent to review your insurance needs and make sure you own adequate life insurance on yourself. 

No, it isn’t very very exciting.  I agree.  And it won’t get a lot of oohs and aahs of appreciation.  So, I wouldn’t even bother to mention it to many people.  But the fact is that life insurance is one of the most effective ways to protect your family’s standard of living and all that you have worked together to build.

Why give the gift of financial security?  Many reasons.  For one, it takes money to raise children.  As long as you are able to work and care for your family, you know their lifestyle that you have worked so hard to provide and maintain is assured.  However, if something happens to you, your income would die with you. 

Consider the facts:

• Children are expensive.  It will cost a middle-income family more than $220,000 to raise a child born in 2008 to age 17, according to the U.S. Department of Agriculture. 
• So is college.   Students at a four-year public college (2009-2010) are paying, on average, $7,000 in tuition and fees for one year, reports The College Board.  Room and board can just about double that, giving you and/or your child an annual bill of $10,000 to $14,000.  Tuition and fees at one-year private schools average just over $26,000, plus living expenses.

That’s where life insurance comes in.   If you die prematurely, life insurance proceeds can replace your income and provide cash your family will need to help them retain their standard of living.  This money is received income tax-free by your beneficiaries.

 How much life insurance do you need?  That’s a decision only you can make.  However, many people select the amount based on a multiple of their income, such as five or even ten times gross.  So, if you earn $50,000 a year, you may want to maintain between $250,000 and $500,000 of coverage.  

 Imagine what would happen if you died.   (I know — cheerful.  Get over it.)  After the emotional pain, the bills still need to be paid.  Now, imagine that your family received $500,000 in life insurance … income-tax free, by the way.  That money could be used to pay off the mortgage, meet other obligations, be invested for the future.  In other words, create options for your loved ones.

The bottom line:  Life insurance can create the gift of financial security for your family.  It is a gift that shows how much you care.  Long after the other presents are opened on Christmas morning — after the poinsettia are wilted and the latest computerized gizmos are gathering dust on the shelf — your gift of financial security will be there … protecting your loved ones and helping to ensure their futures. 

As I said, I believe in this stuff.  So, as soon as possible, track down your life insurance agent and review your current insurance program.  Then make adjustments as needed.  Do it for your family.  Do it for your own peace of mind.  Just do it. 

Want to learn more about how to manage your money and your life?  Check out The Back to Basics Book of Money! A Couple’s Guide to Financial Peace.  The book contains 10 valuable Couple Money Skills.  Plus, the Back to Basics Book of Money Workbook (which dovetails with the main text) offers 31 practical, hands-on Wealth Builder activities that can help you and your partner build financial and domestic stability.  Both the book and workbook, which retail for $31.98 plus S & H, are available at the Family Finances Conference Center website for $27.99 total.

 The Family Finances Conference Center tailors programs to the unique and individual needs of client organizations and their members and employees, based on the principles of the book and workbook set, The Back to Basics Book of Money!  A Couple’s Guide to Financial Peace. 

 For more information, contact me at the Family Finances Conference Center by email (john@b2bbookofmoney.com) or my direct phone line (920-559-3722).

John Ingrisano

Director

Family Finances Conference Center

204 Lakeview Drive

Algoma, WI 54201

(920) 559-3722

john@b2bbookofmoney.com