Term Insurance is the BEST Option

Here's a viewpoint from a Pro:

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Your Greatest Asset

Is not your home...

Read that again. Your greatest asset is not your home. It is your ability to earn income. Think about it, does your home pay you a paycheck every month or does your ability to produce work pay you a paycheck? Absolutely, the second, right? So wouldn't it make sense that you insure that asset?

I want you to picture a toaster. This is a very special toaster. You have it in your kitchen and every single month without fail on the first day of that month when you push the button out pops $5,000 in cash. Every month!

Tell me, how do you feel about this toaster? Do you take care of it? I'm sure you do! You probably have it in a glass case and sealed with a key just in case someone gets too close to it. It truly is a valuable commodity in your home.

Now, let's say you were friends with the "Toaster Fairy" that brought this device into your home. Your fairy says to you that although this is a sturdy piece of machinery, you never know when an accident will occur and you will loose the toaster. Your first thoughts might be something like, "Oh, no way! It's sealed in that bullet proof glass case!" Or maybe, "No way! I've only had it for a couple of years, it's still young!" Whatever your first reaction may be.

Then your fairy looks at you as if you have three heads and says, "Very well, good luck then." As she proceeds to fly away you stop her and realize you don't want to be too cocky in the matter and that truly having this toaster is very valuable for your family. So you ask her what you should do. She simply states, "Take the first $500 that pops out and put it in my mail slot as insurance. Thereby when something shall happen to the toaster, I will be able to replace it with a new one that may continue to pop out your usual $5000 per month."

What do you do now? There's no question is there? You definitely, and without hesitation, take the first $500 of that money, insure your toaster, and then sleep with an incredible piece of mind that your family will always be financially secure.

Why would that be any different with your income? If a toaster that pops out money every month is that valuable, wouldn't it make sense that your life and your income producing ability is equally so? Yet, many people ignore their need for life insurance because they do not want to pay the premiums. Let me tell you something, if you feel that paying for insurance premiums would be a little tight right now, then you REALLY need it. Because if paying a monthly premium would be too much while you are still alive, how then would you manage your monthly expenses if the bread winner passed away?

Please make sure you get the right kind of coverage.

In the next few posts we'll discuss what the right kind of coverage is and why. Let me just iterate one thing for sure. ALWAYS buy term insurance. Anything that says whole life, cash value, universal life, variable universal life, flexible multi funded premium life, you bet your life, we'll take your life, or any of the sort is TRASH. Do NOT spend a nickel on any of those unless you want to loose those hard earned dollars.

YOUR NUMBER 1 ASSET!

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Can't You Read???

How serious of a problem do you feel illiteracy to be? It's pretty scary when an adult cannot read words and therefore limits him/herself in life. If you knew someone personally that was illiterate, you would want to reach out and help, right? It's just that important.

Here's a newsflash. There's a kind of illiteracy that is rampant in our country, and there is hardly anyone doing something about changing that fact. What kind of illiteracy could I possibly be talking about? Of course, Financial Illiteracy.

~~U.S. high school seniors, on average, correctly answered only half of the questions on a basic personal finance and economics test.2 (Source http://www.loma.org/res-06-04-literacy.asp)

We can mostly agree that being able to read words is of critical importance to success in life. Now, let's agree that the same applies to being able to understand MONEY. Let's face it, in our life we will always have to deal with money in one way or another. Whether it be through its abundance or lack, through work or home, any where at all, there will be times in our lives when we make financial decisions. The lasting affects of these decisions are monumental in many cases, and we skim by in life making MILLION Dollar mistakes all the time.

~~In 2006 approximately 1.5 million consumers sought assistance in the management of their finances from the National Foundation for Credit Counseling (NFCC). By 2008, the number of customers seeking aid from the nonprofit organization more than doubled to 3.2 million (Source http:/personalmoneystore.com/moneyblog/2009/10/19/credit-repair-illiteracy)

Most people when presented with an opportunity to better their financial situation either get defensive or embarrassed. It's time to take down the shield and welcome the fact that there might be better ways. One of the worst things you can say when approached with new ideas in regards to money management and wealth creation is: "I don't know anything about money." To that I always say, "Well, isn't it about time you learn?"

The truth is that we all have the option to be Money Smart. In fact it is our downright duty to be that way. It's time to stop blaming financial institutions or greedy brokers and agents for our money problems and look in the mirror to the ultimate person that has absolute control over what is happening financially in our lives. If you don't care about your money knowledge, guess what? NO ONE ELSE WILL EITHER! You are the only one who is going to care about you the most, so make it obvious and figure out a way to get money smart. Start to read, start to mentor with successful people, make it a priority to be open minded and growth oriented. It's time to finally break the chain of being broke. The good news is that it is completely up to you!

APPLIED KNOWLEDGE IS POWER!

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