What would YOU do if...?

* For some months this blog has been saved in my draft folder while I debated the best time to publish it. Unfortunately, as this blog describes, bad things happen, often. I have been avoiding inadvertent upset as a result of publishing this at the wrong time, but it seems there is just no 'right' time. So, with my thoughts and prayers with those I care for, here goes...

Actually, it is more a case of: What would you need if...?

Disclaimer: Let me start by stating that this blog is absolutely not intended as being any sort of advice (financial, legal or otherwise), and it should not be used as such. Think of this as a conversation over a cuppa. No sales. No advice. Just a chat with a friend (if I may be so forward). Also, following on from my recent post, The underwear rule, this is another serious matter that I urge you to consider and discuss with those you love.

This is a bit of a touchy subject and many folks do not like talking or thinking about it, others live by the "It will not happen to me" theory. And it's funny, in a macabre way, everyone I ever spoke to that did have this happen to them said the same thing, "I never thought it would happen to me!"

Life is not always roses and happiness; watching the news on any given day will verify this. Sometimes, folks die prematurely. Sometimes, folks live, albeit with a very serious illness. Some of these folks may eventually recover, or at least partially recover. We all know these things happen, but what do we do to protect ourselves in the event, God forbid it, of things going horribly wrong?

Well, there are group life insurance polices provided by some employers - but are you covered by one? Assuming you know you are covered by such a policy, this is great news, if you die. And if the benefit payable is enough. But what if you survive? What if you "just" get ill, very ill? So ill that you cannot do anything, except eat, drink and require medical attention? Perhaps you might even need a wheelchair, is your home even wheelchair accessible?

I can list episodes of life changing events that have happened to folks I know (or knew). There is the Dad who fought a major illness and lost, and his brother-in-law who is suffering the life changing side effects of a major trauma he suffered some years later. The almost new client (the non-working half of a young, freshly mortgaged couple) that declined insurance and was later given a most awful diagnoses. My family member who lost her husband after nursing him through a long illness. And most recently, the unexpected death of my father-in-law. Individually, these episodes are awful, devastating, heartbreaking. But what if it happened to someone you love? Most people understand why a breadwinning parent might be insured. But the parent who is (unpaid) at home raising children, (whether by free or fiscal choice), also has economic value in the family. Families suffer when either parent is unable to do their job, paid or unpaid. That Dad I mentioned, he left behind four children and the youngest was not yet age two. 

So, what to do?

Insurance. You may have a nest egg invested (this is called 'self insurance') or, if you are like most of us, the nest egg is bought with insurance premiums.  Do not think of insurance as just another product someone is trying to sell you, (although, yes, insurance companies intend to generate profits). Think of insurance as a plan B - in case something does go horribly wrong and you are not already the self-made millionaire you plan to be.

Seriously, think about this.

What would your family need if one or both of you became very ill or died? Could you afford to be away from work to take care of, or spend time with your family? Could you meet your mortgage or rental commitments or would you be force to sell up or move? Do you have other regular financial commitments that must be maintained (think loans, cars, nursery...) Could you afford present day and future education expenses (fees, books etc) on one salary? Seriously, imagine that tomorrow morning you wake up and one of you were seriously ill or dead. What are the first few things that would cross your mind? Would you really want one of them to be money?

I have sat down with my husband. We have talked. And when we are old(er), grey(er) and wrinkly(er), I would dearly love look back on our lives and say to each other: 

"You know all those insurance premiums we paid for all those years? They were the biggest waste of money we ever spent so wisely."