You know what’s awesome? Dreaming about all the things you’d do if you won the lottery :)
You know what’s kinda-sorta-but-not-really ALSO awesome? Dreaming up all the things your family can do when you die and leave them all that life insurance money ;)
Because if there’s anything worse than dying itself, it’s dying and then having to deal with a bunch of financial problems while they grieve for you. And it’s a lot harder to worry about that stuff when you know a big fat check is coming in the mail.
The one my wife would get? $350,000. For merely paying $30/mo for my Term Life insurance! The type most of us $$$ bloggers recommend (especially to younger people) because it’s so simple and straight forward: you die, you get the money. You live, you don’t (but you’re still alive, yay!).
We each have our own 30 year policy (she only pays $25/mo, because she’s hotter than me) and we go through USAA. Most people aren’t associated with the military though, so you can check out places like SelectQuote.com which aggregates all of the policies out there to help you find the best, and most affordable, fit. They’ve been rockin’ it for over 30 years, and I think of them as the eHealthInsurance of Term Life which makes it much easier to find a good plan, and fast.
Anyways, ever thought about what your significant other should do with the cash once you croak? I have, and I took a stab of writing it out for Mrs. BudgetsAreSexy in the event it comes sooner than later (*gasp*).
Here it is below – thought you’d appreciate it!
My Wishes For My Life Insurance Money…
Remember all those times I told you that if I were to die tomorrow I’d be one happy man? Well, it looks like tomorrow has come and indeed I’m smiling down on you and the boys from above :)
I have another letter for you about how much joy you’ve brought me, but seeing how I’m a personal finance blogger I should probably give you some last final advice. And that’s what to do with this $350,000 you’re about to receive now – how smart were we?? And yes, before you ask, it’s tax-free – what what! I googled it, and the internet never lies. (Too soon for jokes?)
Also, don’t forget about those spreadsheets and passwords in our safe. Everything you need to handle our finances can be found there, just like we talked about. Some of it may be outdated (I’m not that perfect), but you should be able to figure it out just fine from there.
Okay, now to the good stuff! What to do with this $350,000!
#1. Throw $100,000 directly into our savings account! I know how much you value security, and with your frugal ways this should last you decades. Don’t worry about people telling you about inflation or returns or any of that nonsense… Every dollar serves a purpose, and these here are for safety.
#2. Log into USAA and pay off Lexi Lex ($18,240). Just rip off the band-aid with this one and enjoy riding in style now :) Then pay your Toyota forward as your sister had done for us all those years ago.
#3. Set $50,000 aside for each of our kids ($100,000). Log into our Vanguard account and set up a new brokerage account for each of them and just dump it all into VTSAX. This is money for them to follow any of their dreams! Whether it’s college, starting their own business, buying a house/houseboat (I assume we’re not already living in one?), or better yet – pocketing it while taking over the family business :) Maybe don’t tell them about it until they’re 18 though – you know how they can get when they’re excited about something. It’ll also be worth TRIPLE then!
#4. Drop $80,000 into a brokerage account for YOU. This is for anything you’ll need/desire over the years that you don’t want the $100k in savings to cover. You’ll be tempted to just throw this into your savings too, I know, but please don’t! Let it grow for a while, and then don’t be afraid to pull from it when/if ever needed. Create another Vanguard brokerage account just like you did for the kids, but this time CALL them up and ask what they recommend for this purpose. They’ll ask you a handful of questions like how risk averse you are, among others, and then just follow their lead and you’re all set! You can thank me later whenever you get here :)
#5. Stash $40,000 aside for giving back, please! If you’re seeing this sooner than later, it means the vision for my own philanthropy project never made it to fruition :( If it did, throw it all in there! If not, teach our boys what giving back truly means, and have them help you decide where it should all go. All I ask is that you give it to smaller, lesser known organizations, or even better – individuals you guys cross over the years needing an extra lift. Established organizations do great things, but the joy of experiencing a one-on-one impact really is something to take in. Share the story of the starfish with them! It kills me I can’t be there to do it myself! (Pun very much intended!)
#6. Lastly, give my bff Nate the remaining $11,760 to make sure my blogs live on for eternity :) It’s going to cost him a lot of fees to keep them humming forever, and he promised me he’ll never die… (But you might want to turn it into a hard-copy book just in case. I wish I wasn’t so lazy or else I’d have already done it!)
And poof – you’ve spent $350,000. Now take out a picture of us and kiss me :)
I’ll be seeing you soon, honey… Give my boys the biggest hugs you can muster up! They give me some that are bigger than the moon, which they assure me is made up of cheese. Well, you can tell them Heaven is even better – it’s made up of marshmallows!
Your Hunk of a Husband
PS: I want a party, not a funeral please.
What do you think? What would your list look like?
Obviously it’ll look different for everyone depending on their goals/current finances/personalities, but I highly recommend giving it a shot. It’s a helluva mind trip thinking it through, and it’s eerily exciting too! Not every day you can protect your family like that :)
And if I’m guessing right, you’re the one who probably handles the money in the household, yeah? So they’d appreciate it even more! Not that they can’t make up their own minds once you’re long gone…
In fact, probably better to discuss it ahead of time with them than just setting out a list of demands, haha… I don’t think it pays out if it’s your beneficiary who kills you :)
(*Goes and emails this to wife*)
FYI: Another good exercise? Doing the same thing, but reversing the beneficiary to yourself. Though def NOT something to share with your spouse in case they think you’re getting any ideas!
This article was sponsored by SelectQuote… who hopefully appreciates my humor.
Jay loves talking about money, collecting coins, blasting hip-hop, and hanging out with his three beautiful boys. You can check out all of his online projects at jmoney.biz. Thanks for reading the blog!