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Direct Link To This Post Topic: You must secure your finances
    Posted: Nov 09 2007 at 5:00pm

We all want or aleast I hope u want the "American Dream." To be what some of us do not know which is to be Financially stable. You have to secure your finances by getting Insurance. In addition to Investments and savings...

Health Insurance will prevent Bankruptcy from the expensive cost of medial care.
 
Life Insurance will prevent a financial disaster to your family upon an untimely death.
 
Disability Insurance will replace your lost income in case you are unable to work. (You can not live off of Social Security Disability and by the time it kicks in IF it kicks in you are already in a financial catastrophe if you have no savings).
 
The bottom line is this if you skip this part of the process and just focus on savings, checking, emergency fund, 401K or whatever. Your money will run out eventually because we out of habit do not factor in the cost of living.  People who are Financially stable get this and understand it is the foundation. When starting from nothing this is step 1. Because you could get a whole life insurance policy that builds cash value until you are in a position to focus on a savings account. In an emergency use that but it would reduce the benefit amount of the policy if you die before paying it back. I would treat it like a 401K and do not touch it if you can help it.  The younger you are the cheaper the policy, people don't want to think about death but I'm sorry you will die one day and this is how you will protect your legacy, your family. Disability is also overlooked because people think it'll never happen to me. You could get into an auto accident that could cause a disability and you could no longer work. So this would protect your income.
 
The #1 reason for Blacks is I don't have any money. Yes you do you're wearing your assets on your bottom.  If you keep your receipts for a month and journal what you buy. You would be surprised how much money you waste. Sorry for being so long.
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Direct Link To This Post Posted: Nov 09 2007 at 7:08pm

Great post.Thumbs%20Up

People go bankrupt all of the time because of medical bills-no health insurance. They also bypass important medical procedure that they cannot afford to pay for, which in turn prolongs their recovery and their ability to work and support themselves again.
 
People lose there homes because they don't have any disability insurance and when they get injured and cant work and there is no check coming in to balance out those recurring bills such as mortgage, auto payments, electricity.
 
Life insurance - when affluent people lose a spouse, they are able to cash out an insurance policy that is large enough that it will pay off the mortgage,  sustain the spouse and children and send the children to college. When financially strapped people lose a spouse, they have just enough coverage to pay for the funeral and maybe enough to assist with bills for a year or two. People have to realize that Life Insurance is meant to help the survivors by replacing the income and also the potential income of the deceased. If you are single with no dependents, that Life Insurance policy that you get through your job is probably fine b/c you arent supporting anyone but yourself. If you have a spouse or dependents, life insurance is not an optin; it is a necessity. Even though I am single with no dependents, I select a high payout in the case of my death for the insurance plan that I have through my employer and my parents are the beneficiaries. If something happend to me, they could use the money that they will recieve through my policy to hire a live in home health aide when they reach their 80s-90s when I as their daughter would normally be tending to them.
 
Long Term Care Insurance is yet another important topic...
 
 
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Direct Link To This Post Posted: Nov 09 2007 at 7:26pm
Originally posted by njhairluv njhairluv wrote:

Great post.Thumbs%20Up

People go bankrupt all of the time because of medical bills-no health insurance. They also bypass important medical procedure that they cannot afford to pay for, which in turn prolongs their recovery and their ability to work and support themselves again.
 
People lose there homes because they don't have any disability insurance and when they get injured and cant work and there is no check coming in to balance out those recurring bills such as mortgage, auto payments, electricity.
 
Life insurance - when affluent people lose a spouse, they are able to cash out an insurance policy that is large enough that it will pay off the mortgage,  sustain the spouse and children and send the children to college. When financially strapped people lose a spouse, they have just enough coverage to pay for the funeral and maybe enough to assist with bills for a year or two. People have to realize that Life Insurance is meant to help the survivors by replacing the income and also the potential income of the deceased. If you are single with no dependents, that Life Insurance policy that you get through your job is probably fine b/c you arent supporting anyone but yourself. If you have a spouse or dependents, life insurance is not an optin; it is a necessity. Even though I am single with no dependents, I select a high payout in the case of my death for the insurance plan that I have through my employer and my parents are the beneficiaries. If something happend to me, they could use the money that they will recieve through my policy to hire a live in home health aide when they reach their 80s-90s when I as their daughter would normally be tending to them.
 
Long Term Care Insurance is yet another important topic...
 
 
 
 
BINGO! This is something that you may or may not know, but even if you are single with no kids you still need Life insurance. If you were admitted into the hospital and were not concious a family member would be the one to make decisions on your behalf well the financial responsibility falls on the person that signs the papers. Also hospitals are starting to run them as businesses here in Florida there are some facilities that will place a Lien on your property to ensure they get there money. One more thing you said I want to bring to your attention. Never rely on employers life insurance policies. Because you do not own the policy they do, in this time and age it is unlikely to work for 20+ years. Always have the highest benefit on an individual policy that you own. Then get what ever is FREE or cheapest from the employer. Group Life policies can change at anytime so if you can't control it its not benefiting you.  Caucasions are good for buying more than one policy because the big money will go to the spouse (10x your salary minimum) and smaller policies as inheritance money to kids.
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Direct Link To This Post Posted: Nov 09 2007 at 7:31pm
Oh almost forgot Long Term Care will be crucial in the near future. This is unofficial and I'm not going to go into detail until they make a decision and then we are notified. But they are currently working on a new law that will involve tax credits for getting LTC (long term care). But we will see what happens by January 08. The reason they don't know what is going to happen to Social Security there are a lot of baby boomers getting ready to retire and people are living longer. At the moment our tax dollars pay for 3 peoples SSI (social security) checks they estimate it will be one person paying for 10 peoples checks.  So its getting ify for real this time.
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Direct Link To This Post Posted: Nov 09 2007 at 7:59pm
Originally posted by lynbrownsugar lynbrownsugar wrote:

Oh almost forgot Long Term Care will be crucial in the near future. This is unofficial and I'm not going to go into detail until they make a decision and then we are notified. But they are currently working on a new law that will involve tax credits for getting LTC (long term care). But we will see what happens by January 08. The reason they don't know what is going to happen to Social Security there are a lot of baby boomers getting ready to retire and people are living longer. At the moment our tax dollars pay for 3 peoples SSI (social security) checks they estimate it will be one person paying for 10 peoples checks.  So its getting ify for real this time.
 
Hmm..soo that translates to not only will Social Security be in jeopardy when we are senior citizens...but also Medicaid which finances a lot of senior's Nursing Home expenses. Buy offering tax credits for LTC, it is relieving the government from the burden of Medicaid in the future in the same way that 401Ks relieved many company's from the burden of fully funding pension accounts. With the baby boomer turning 65 this year and with life expectacy getting longer and longer, all we can do is prepaer for our own retirement and futures and not to rely on the notion that the taxes that we pay now will be  subsidizing our futures. Those days are gone. We have to prepare for our own futures...or else...
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Direct Link To This Post Posted: Nov 09 2007 at 8:16pm

In a nut shell yes. But there's more but I don't want to scare you until Congress can come to terms regarding Medicare. If you have ever received a social security statement. On the page that tells U how much you get if you are disabled or retired. Look to the bottom there is a disclaimer. It basically says you will get 73% of whatever the dollar amount they give. Every year that percentage drops. Its awake up call.

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