I was one of those who voted no, I’ve never even though about it…because I don’t have a clue about it at all
Seeing as I am a single, recent college grad on the job hunt, could someone kindly advise me as to when it would be a good idea to obtain life insurance? I have yet to meet with an insurance agent for Knights of Columbus (just recently joined), but I’d like to go into that meeting with at least some idea of what he’ll be talking about
Insurance is a form of asset protection. You insure your house and your car, for example. To protect your financial assets in case of fire or collision. If your car has very little market value, you generally drop the insurance coverage, for example.
Life insurance is intended to protect your family in case you as the breadwinner become deceased. If you have no family or if you are old and your family is grown up and moved on then you may have no need for life insurance.
There is a balance between building personal financial assets and buying insurance. Systematic saving and investing over a period of time, and especially starting as young as possible is important. So, if you have no family and no assets to protect, then it is important to get cracking and to save as fast as you can instead of spending.
The best resource I have run into is Dave Ramsey … good common sense in asset building.
www.daveramsey.com The next level would be a subscription to Forbes Magazine. Or maybe Smart Money magazine.
It takes a while to get comfortable with all the ins and outs of investing … and you never learn everything. But, if you avoid gambling, investing can be rewarding.
Also visit
www.aim-users.com And read the whole site. Get a copy of the paperback of Lichello’s book, " How to Make A Million Dollars in the Stock Market".
Once you get beyond a certain amount of assets, then you no longer need insurance.
If you get above a certain level, you may need to consider inheritance taxes. And insurance can help to offset the inheritance taxes which are, in my opinion, based on Marxist economics and Marxist morality. , “soak the rich” kind of mentality. But the definition of “rich” gets lower and lower. And inheritance taxes are at around 55%. ] So if you have a business, or if you have a house in one of those high cost-of-living states, your estate could easily go over the limit for high estate taxes. And so, unless you plan carefully [by selling and distributing the money to your heirs or by moving to a low cost, low tax state, you will get socked] … and life insurance might be a solution.
A good rule of thumb is that if someone is trying to SELL you a financial product, then back away. If you pursue a financial product, you still have to be very careful. But if they come after you, … there are usually large commissions that they are pursuing.
It’s YOUR money they are after. So you have to be very very careful.
