It's actually pretty solid. The only thing that @Ezekiel 25:17 's post needs is "good insurance" and he would have covered all the bases.
Most of the things that normally knock people out can be covered by insurance in addition to the savings, investment, and health. Especially if you're in that 35 age range because you can lock down great policies at very low cost.
Personally I'm horrified that most people in that age range aren't aware of the value of Life insurance while you are alive.
Not because of the payment at death, but because of the various riders you can put to a policy. Most of the illnesses that knock people out and remove people's savings like heart attacks, strokes, cancer, etc can be added into a pre-death benefit that can be used against the value of the policy.
And you're able to get a higher face value the younger you are at 30-40x your income meaning its not unheard of for a 25-35yr old making a mediocre $55k to qualify for a 1Mil policy with a $250k illness rider for less than 50 bucks a month . This living benefit of a policy basically eliminates the chances of an illness bankrupting you.
Now don't even get me started on the value of private, nonemployer disability insurance.
Most people are aware that they pay 60% of your income in those generic employer policies, but are you aware that you can actually get a private policy for 80%? And it would only cost you 25 bucks to get? Furthermore, if you are in a non-physical job it's entirely possible for you to get an additional rider in your disability policy that locks you in for "own occupation" which is the gold standard.
So once again somebody at that 35 age range could legitimately insure 80 percent of their income for life, without the pesky requirement that they must get into another job after an accident that leads to a disability or an illness that leads to a disability.
And the final piece of this puzzle is a real health insurance policy by strategically picking your employer. So if you exclusively stay with f200 companies and refuse to take contract work it's entirely possible for you to have a great health insurance policy under $80 bucks a month.
So now let me connect all the pieces of the puzzle. @cyndaquil Think of the usual circumstances that knock somebody out. Let's use the case study of you being a 35-year-old male making 80k. God forbid , say one day when you're leaving work you suffer a stroke.
This immediately triggers the 250k payment from the life insurance policy illness rider, payable in less than a week. Your health insurance policy from a good employer covers the entirety of your treatment, while only 50k covers all of your co-pays , deductible and premiums for the treatment . This leaves you with a short fall of 200k to cover the time you're not working to contribute to your savings and investments which haven't been touched at all.
Immediately after the stroke, you wisely decided to file the private disability insurance claim. Yes you are still physically capable of doing a job, but it would be difficult for you to go back to your own job. This triggers this 80% payment.
So now you get paid to sit at home with 64k of that original 80k salary , tax-free for the rest of your life. This is effectively an early retirement, and because taxfree 80% of your salary from the policy is most likely less than what the government was taking out of your paycheck in taxes . So you're actually making more take home salary than you would have been getting had you originally stayed working.
Let me stress that this is an early retirement because at a 4% draw you would have needed to save 1.6million dollars to get this from traditional investments. But you are only 35. So you still get to use this 64k for the next 35 years to save far more than 1.6 million.
So in that case study, I arbitrarily used a stroke as an example but you can sub in any other illness or disease that normally knocks people out of the system like diminishing mental health, heart attacks, organ failure, etc.
similarly, if you were in a catastrophic car accident, you could not use the Life rider, but instead you would use a good car insurance policy to cover everything the health insurance rider would have covered. It would be the same end result as the above stroke example, with your private disability policy covering 80% until your silver years. This is why you don't go cheap on your car insurance either.
I swear to God people suffer because of ignorance. If you just layer these insurance policies on top of each other by picking the best versions , you are legit covered if you save + invest + exercise+ eat well + insure.
I would highly suggest getting with a financial planner who can highlight all these sophisticated insurance strategies. A cfp is just as important as a good accountant. They can identify the best policies and pick apart the loopholes on your behalf.
If you’re a black male still alive & free 40+ live that shyt up . There’s mad nikkas in the dirt/locked who didn’t make it to half that age without losing their life/freedom
Pivoted, left alot of stuff in the past, made drastic approaches to work, started a company, doors swung open that probably could’ve opened 5-7 years ago if I wasn’t going with the flow.
More legit drastic progress has happened in the last 11 months than at any point I can remember as a result and more bread has come in during that time period than the last 8-9 years combined.
It’s crazy. When it happens, it happens and you’re almost a bystander in your own life.
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I’m alive & free
