Monday, February 2, 2009

Day 31 and 32 FTJ Bootcamp Activity

Copied From MS:

Wills & Insurance

Day Thirty-One: Wills
According to 57% of Americans do not have a will even though most realize the importance of having one (76%). If you have a family, creating a will is the ultimate act in ensuring their security and long-term well being. Additionally, it saves surviving family members from having to make tough decisions on your behalf. If you don’t have a will, the state decides what happens to your house, finances, and even your children. In many cases, their decisions aren’t in line with what your wishes and desires would be.

Once you create a will, revisit it every few years to make sure it is up to date. Any major life changes such as births, deaths, and divorce are times when re-evaluating is a must. In most cases you won’t have to redraft the entire will but instead amend it with a codicil.

Day Thirty Two: Insurance
If you haven’t re-evaluated your insurance policies lately there could be some gaps in your coverage leaving you financially vulnerable. Births, deaths, homes rising in value can all be reasons to tweak your coverage – but you may simply want to shop around to see if you can lower your rates. Treat insurance as a necessity, not a luxury. Here are some tips to avoid common insurance blunders:

• Avoid Being Underinsured
Just because you already have insurance doesn’t mean it’s is the right insurance. If you have a policy through your employer, it may not be enough. A good rule of thumb for life insurance is to carry an amount 7 to 10 times your annual salary. Being underinsured can expose you to the same types of financial risks as not being insured at all. Do you have enough homeowner’s insurance to replace your home and its contents in the event of a disaster? Should you have supplemental flood or earthquake insurance?

• Get the Correct Amount of Life Insurance
Life insurance is designed to protect dependents if a breadwinner were to die. However, if you’re a stay at home parent your spouse would have to pay someone to replace what you do (take care of the kids while your spouse is at work, for example) if you were no longer around. Consider those needs when calculating how much insurance your family really needs. Who probably doesn’t need life insurance? Your kids. While losing a child is a tragedy, it’s not one that will put your family at financial risk.

• Disability Insurance
The U.S. Census Bureau estimates that nearly one in five Americans will become disabled for a year or more before age 65. Since it’s more likely that you’ll become disabled than die early, making sure you are financially protected if you lose your ability to work is extremely important. If you or your spouse doesn’t have it, look into getting it.

Assignment: Do you have a will? If not, make a plan to get one in place. Are you properly insured? If not, plan to update your policies.

*We dont have a will yet. I wonder just how good that works, and if it would be cheaper if we did it another way.

*We have Gerber Life Insurance on Rylan. His Grandma pays for it monthly. This would cover funeral expences if anything ever were to happen.

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