Life insurance in a traditional since adds piece of mind for the family in the event of an unforeseen tragedy.
REAL Life Insurance encompasses the events in life we are likely to encounter or have to deal with more frequently than death. For instance, not everyone who lives in
Tornado Alley is going to be struck by a tornado in their lifetime. However there is a strong likelihood they will be scared many times. For as little as $3000 a 4 person family can be protected by an
in ground shelter. Why isn't every house built with one? Complacency, it's not going to happen to me, I'll do it next year, plenty of excuses none of them good ones. If you live in one of these areas I challenge you to work a few extra hours a month to purchase protection for yourself and family.
Tip#2 - Prepare yourself for potential danger in your area or build on your emergency fund.
Thankfully we avoid mini disaster regularly. Close your eyes after reading this sentence and think of a time when you were seconds from disaster? How many times have you felt that way? In my line of work I see worst case scenario often. Just as often I hear, "I didn't think it could happen to me."
Long story the summary is below:
In a string of bad luck
(1)I had my truck catch on fire after driving 700 miles getting poor fuel mileage from what I now know was a leaking fuel line. I was 5 minutes from my house. I was on a 4 day weekend camping trip and had everything outdoors related that I owned at the time with me. I had just bought a new kayak the week before. Everything melted, all camping gear, kayak, mountain bike and all gear with that. A total loss of over $5500 excluding the truck. I only had liability do to the trucks age. Thankfully home owners insurance covered my gear. Sadly I had to use that money to purchase a vehicle.
(2) I used the money to buy a used jeep $4000 and was going to use the $1500 to work on it and make it the way I wanted it. It was late September. I drove the jeep for about 6 weeks looking at things to purchase. Had the top down one night on my way home from work. The jeep burnt oil because of a leaking rear main seal and to fix it the engine needed to be rebuilt which thankfully I was capable of. I stopped and added oil and gas left the station. I had only latched one side. That came lose flew open at 60mph blinding me and broke the windshield frame which was fiberglass. I latched the hood went home and took the windshield off. I drove the jeep until mid November. I had to drive in the rain and snow with no top. People pointed and laughed kids mostly. I finally put a sign on the back that said "I lost a bet".
(3)Mid November I was able to purchase another vehicle, an 87 Pontiac TransAm. Sounds cool but it was a brown V-6 and not one of the best years for style. I worked over the winter tearing down the jeep and rebuilding as I got the cash not saving any additional money and no emergency case fund for anything. In February on my way to my uncles farm were I stored and worked on the jeep the transmission went out on the TransAm. I took the transmission out and took it to friend who rebuilt it at a minimal cost $600. Stayed with my parents and mom took me to work for a few days. Put the transmission back in and heard a horrendously loud banging noise. Took the transmission out put it back in and still the same noise. Call my life line my father who works in the automotive business held the phone over the engine and was told "Son it sounds like the engine through a rod." Dad what does that mean. Well, the engine is toast.
(4)I spend 3 months February, March, and April riding my bike 24 miles a day. 12 to work and 12 home. Several days in the snow and many days in the rain. First week of May I was able to purchase a used car. The jeep you ask....... well the jeep ended up being a Frankenstein. It has a chassis from one year a body from a different year, an engine out of J-10 pick-up truck and a bent frame that had to be replaced. That mess was 15 years ago. I still have the engine and transmission the rest is gone. Lesson from that purchase, Do Not buy an old vehicle without someone with you that has owned a similar old vehicle!
(5)Two months later I was running late for work in a bad rain storm on the highway (I was driving to fast) the car in front of me speed up. I speed up too. That car made a quick lane change in front of a semi which I was now beside. The white Volvo changed lanes because traffic was stopped. I had to make a quick move to the breakdown lane which I did and started to slow down I passed 10-15 cars hit a large long puddle and hydroplaned into the back of Ford Explorer $2500 in damage.
(6)Back on the bike for 2 months so I could get the money to fix it.
The point of this collections of craziness is that you never know when or how the tables are going to turn on you or your family. Nor do you know for how long. When will your luck run out? When will your
emergency fund not be enough?
The challenge pick something you have wanted to "fix, correct, make better, or prepare for" and work on it over the next several weeks or months depending on how complex the task. It's liberating to know you have 1-6 months of
emergency cash stashed away. It's a good feeling when you purchase a generator because 3-6 times a year you lose power. The best part is the first time you crank it up and the wife/girlfriend, and kids thank you because there is light, fans, and they can keep the phone charged or neighbors thank you because you were able to string them an extension cord to keep the refrigerator going and save them hundreds of dollars in
spoiled food. I lived without power for 2 weeks in the summer after a huge wind storm. The generator saved 2 refrigerators and a deep freeze full of food. It also saved the family from going crazy. Summer is almost hear put together a first aid kit you carry in your car. Get yourself and family training in first aid and CPR. Pick something relevant to your family's needs and improve it. When you need it and it works everyone will be thankful you worked on it ahead of time.
The items above are a start to improving your personal REAL Life Insurance policy. The nice thing about your REAL Life Insurance policy is that you will see it working and improving your quality of life every day you put time and money into it.
