POOR FOLK$: In the Event of My Demise

Rule 1: You don’t have to be lucky to die.

Quote of the Week:

My nephew’s situated and my mama is straight, so I’m ready for whatever drama should come my way. – Shawn Carter

Buying lottery tickets instead of life insurance before you’ve read this is the definition of ignorance. Buying lottery tickets instead of life insurance after you’ve read this is the definition of stupidity. This is what I realized when I learned about life insurance several years ago. You mean I can buy something that will provide my family with financial security and there is no limit on the dollar amount and I don’t have to have good credit and it’s guaranteed? All I have to do is die? Sign me up. Think about all the love ones you’ve lost. What if just one of them had invested a little money in buying a life insurance policy for more than just burial expenses and left you a few thousand dollars? How different would your life be right now? Don’t let the babies in your family be left with this same question 30, 40, 50 … or 1 year(s) from now.

Picture this. If you are a 40 year old male who doesn’t smoke, you can get a 20 year term policy that pays half a million dollars for about $2.50 a day. Some people spend more than that on lottery tickets and they probably never win. If you smoke, it will cost you about $5.00 a day. If this is too much, then stop buying cigarettes fool. Remember what I said about vices? It’s worth it to be a good man. (Proverbs 13:22)

Now there are a couple things you need to know. ONLY buy term life. Never buy whole life or universal life. Term only. The reason for this is that anything else is really just a term policy and a bad, overpriced investing product sold together. You can get probably 5 times the coverage for the same monthly payment. If you’re currently paying for one of these pieces of trash, buy a term policy, sell the whole life policy and invest the difference in mutual funds. I will explain these in a future post.

Another thing to beware of is this: If you do not watch the people that are closest to you, then this responsible deed could amount to putting a price on your own head. If you’ve watched Court TV, then you know what I am talking about. Reevaluate your hype man. Also, giving a lump sum of money to a person with no financial education is probably the surest way to ruin their life. Just research past lottery winners. To avoid these pitfalls, set up a trust to have the money spent the way you want it to be spent. I would suggest having the money invested in mutual funds and allowing the beneficiary to withdraw the average annual interest that the fund earns monthly. That way the nest egg is protected. I would also suggest having some of the money spent to purchase a term life insurance policy on that person’s own life so that the cycle can continue for the next generation. Now your family tree is forever changed all because you decided to stop burning money with lottery tickets and organize your resources for your little kids’ sake.

Words By Hip Hop Encounter Contributor: 4 da Lo


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