Friday Final Reflection: July 21, 2017
Practice what you Preach
Welcome back to my final reflection on the week, this week being Life Insurance week at Budget Boss. Life Insurance is always a tough topic to speak about. Life Insurance should actually be called Death Insurance. What you are insuring is your death. The name Death Insurance wouldn’t have such a positive ring to it so I’m glad that isn’t the name. No one likes to talk about the idea that they will die one day, even though we all know it’s going to happen. Thinking of our own mortality is never easy, but is completely necessary. I talk a lot about saving, debt and insurance, so I think it is important to practice what I preach. I am more than happy show my clients what I am up to when it comes to financial planning. I think it is important to have one’s own house in order so as to better help others. That is why in this post I will be going over why I made the decision to buy Life Insurance on myself. First I will explain my situation to give you a better perspective on why I made the choice.
Earlier in the week, I described how the first application I put through was on me. I also mentioned how it was declined by my company. That was a discouraging day for me. I had just entered into a new industry and my first sale was supposed to be a super easy one. Instead, it left me a little rattled. I was declined because I have an auto-immune condition called Ulcerative Colitis. I am on several prescriptions that have allowed me to not feel the symptoms of the condition and lead a normal life. Despite this, I do have an increased risk of getting colon cancer so I assume it is that reason which caused the company to decline my policy. Being declined forced me to seek out other carriers that provide insurance for “higher risk” individuals. After some research, I found a company that will insure me and obtained my own coverage.
When you look at my life on the outside it seems I wouldn’t need Life Insurance. I have no spouse, no kids, no family farm to leave anyone and no debts that anyone is tied to. I have savings that will be left to my parents should anything happen to me and they would be more than enough to cover any burial service. My parents also wouldn’t have an issue taking care of that even if I didn’t have savings. Makes you think, “Why would I waste the money on life insurance?” I have 3 key reasons why going out of my way to obtain Life Insurance despite the fact that some may see it as unnecessary.
1) My Health is Good, but it won’t get any better
Despite the fact that I have been exercising more lately my Health won’t get much better than it is right now. I have reached a comfortable spot with my condition where I am fairly healthy but that can change. It is important to me to obtain coverage during this period so that if I do experience more health problems it won’t affect my insurability. I also may be single now, but don’t plan on being single forever and if I do have a family I want them properly protected. That may not be possible should my health get worse. I am basically planning ahead and protecting what I have now should it not stay that way.
2) It is part of my Investment Portfolio
I have savings in my Tax-Free Savings account that is higher risk because I don’t plan on using it for a while. The same goes for my Retirement Savings. I have cash that doesn’t grow at all sitting in my bank account. I don’t have any savings that grows conservatively. My Life Insurance policy will fulfill that role for me. It will grow at a slow and steady pace and won’t be negatively impacted by market downturns, for the most part. It is a strong, stable part of my Financial Plan.
3) People will be devastated enough if I’m gone
If I should die I know the world will be devastated. Well, my loved ones anyway. I don’t want them to have to dip into their pockets at all should I pass on. My parents spent enough on me when I was a child that me haunting their bank account from beyond the grave is not something I want to happen. I also have plans to take care of them once they get older, but that won’t be possible should I die before them. My hope is that if that should happen I leave a legacy of good memories, not expenses.
I have reached a point in my life where I feel it is important to think about more than just myself. Buying Insurance on my life is me putting on my “big boy pants” and stepping up to the plate. I have many goals in life these days and being a burden is definitely not one of them. Part of the reason I bought it is selfish in nature. I like the investment side of it and “future protecting” side of it. Part is because I care about my parents a lot and want to leave them a legacy of good memories. I’m glad I took the step to protect my loved ones, I actually feel good every time the premium comes out. No lies, it is the most selfless monthly expense I have, that is worth it to me.
Thanks for reading my Final Reflection on Life Insurance week here at Budget Boss. Have a great weekend friends!
“You can preach a better sermon with your life than with your lips.” – Oliver Goldsmith
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Joseph James Francis is a Financial Advisor. You can find him on various social media platforms and at www.budgetboss.ca.