When I ask people why they don’t have enough protection for big life events and risks (mortgage protection, protection against financial disaster brought by illnesses, accidents, end-of-life or even outliving their savings) the answer I hear most often is “money”. The misconception is that you have to have a lot of money to protect your family and yourself. (Believe me, it’s cheaper than you think!)
Then, I ask how much they spent recently on the Powerball lottery. I usually hear “$10-$20 per drawing (which is twice a week), easy”. That’s anywhere from $80 – $160 per month spent on a dream, but in reality to make someone else rich. If you have money to blow, more power to you. But if money’s tight, it’s mostly because you don’t know where exactly it goes and most likely you spend it on the wrong things. Prioritize your real needs and expenses and you’ll be better off. “If you want something you’ve never had, you’ll have to do something you’ve never done”.
Now, let’s take that $10 spent on the lottery (with less than 1 in 292,000,000 chances). If instead you’d put that money to work for you and your family, you could get:
- $200,000 mortgage protection*, so your family can keep the home if something happens: illness, accident, premature death. (*Age 35, good health; 10yr term).
- $10,000 Cancer insurance* payable to you to use for whatever you need: cover high costs of cancer, pay off debt, alternative treatments, vacation, etc. Odds are 1 in 3 that you’ll get cancer at some point in your life. Think of someone you know that was diagnosed with cancer. Could they have used an extra $10,000 to help with the expenses? (*rates at age 35, not a tobacco user. Rates don’t change after policy is purchased).
- $100,000 in a pension account* at retirement age. (*starting age 35, $10/months savings, compound interest 12%).
It’s nice to dream, but sometimes it’s good to get a reality check too.
Let’s work on a real plan! Call me today: (239) 466-4466 or email Daniel@LifeGuy.com