If You Really Care

By Jerry Stewart

In my report last week we talked about the sale of property. Specifically, the sale of your residence. At the end of that report, I told you that this week I would begin a discussion on what’s called the "1031 exchange of property". I’m going to postpone that discussion until next time because something happened in my office just the other day that I am compelled to speak about today. And, if you value my opinions at all – if you’ve ever listened to anything I’ve ever said – don’t miss what I’m about to tell you now.

Just this last week a long time client came into my office with her adult son. She looked tired and worried. It was last November that her 61 year old husband had been discovered, out of the blue, to be very sick. Almost immediately he began aggressive treatments and had to stop his work. When they next met with me in January we discussed their financial options and came up with a plan. He would apply for disability from a disability policy he had, and in just a few short months he would be old enough to begin drawing social security. The plan was solid.

Well, sadly, only a few weeks ago, he died. And now his grieving widow was in my office wondering just what she was going to do – her situation was very serious. When her husband died, his chances for any disability payments went away, and, to her surprise and dismay, even though he was to qualify for social security just that month, now there was nothing. Even though he had died at age 62, because she is still in her mid 50’s she gets nothing now from social security until she reaches at least age 60 – four years from now. She was devastated.

As we went over her present financial picture and I tried to devise a plan that would save her situation, her son was visibly shaken and she was working very hard to fight back the tears.

Now, here’s where the point comes which you must hear. For whatever reason not known to me, her husband had never purchased a serious life insurance policy and she now has only a very small amount of insurance proceeds to help her. Along with very little ready cash, her options are thin. She must now continue her own part time job and perhaps go full time. But the worst part is during a time when she should be allowed to grieve the loss of a lifetime companion, the love of her life, instead she’s having to figure out just how to survive.

So, today’s message is for the provider of your home which, for most of you, is the husband. Fellas, you’re not going to live forever. And in most every instance the husband dies first. I know how important it is to you to take care of your wife and your children. But if you have not purchased a sizeable life insurance policy, at least $500,000, then in your death you may be failing to do the very thing you want and need to do.

I would highly encourage you to call your insurance agent today, now, and take care of you family’s needs should you die. It’s a sobering thought, but if you had been in that meeting I was in, you would know why I am so moved to say this.

Finally, realize that there are very inexpensive term policies which you can purchase for less than $2 a day. If you cannot presently afford $2 a day, give up some hobby or luxury to get this policy. Rarely do I feel such an urgency to give such serious advice – don’t take it lightly.

This is Jerry Stewart for "It’s Your Money" saying - see you next week.