We just had our first baby now what? Step 1 of Your Financial Plan

    In my introduction last week I said I would lay out a simple cost effective financial plan to help you secure your families future.

Step 1: Life Insurance. NO this isn’t a sales pitch for life insurance. NO I’m not going to beg you to meet me for lunch or give me a list of your fifty closest friends. Now that’s out of the way and I know some of you can understand what I am referring to. Moving on, you have heard the advertising on TV, radio and all those inserts you get inside some of your bills. It always goes something like a dollar a day or we will impartially shop for you.

The simple fact is the death of an income earner can have a devastating effect on a family and they may never recover. The income you earn over a  lifetime is your largest asset.

Scenario #1 One income earner in the family.
Think about the family with one income earner. If something happens to that income earner how will that income be replaced? How quickly can the surviving spouse get a job? Can the survivor get a job that pays a salary close to whats needed? The mortgage will still need to be paid next month. Bills don’t stop because you are having a crisis.

Scenario #2 Two income earners in the family.
It is a simple truth that most Americans spend the majority of what they make. That’s the same for the doctor or the blue collar worker. A mortgage is typically the largest debt that most families hold. Typically that house or mortgage is based off of joint income. If everything you do is based off of joint income and one is removed, do the math. Can you sustain a 30% – 50% pay cut?

Lets look on the bright side now. Life insurance is cheap, actually penny’s on the dollar. For a younger couple in normal health you can remove this burden for a very minimal price. Probably less than what you would spend on a nice dinner once a month.

This is the first step to make sure your family is taken care of. This is simple and effective planning that can apply to almost any family.

I know many questions can come up when trying to determine how much life insurance is needed and or what type is best for you. If you have any questions please feel free to contact me.

A little planning goes a long way.