AboutDave Bowman Expertise I will answer questions of a general nature regarding life insurance, disability income insurance annuities (fixed and variable) and long term care insurance. Also, questions regarding estate analysis. No legal or accounting advice, as I am not a lawyer or a CPA. I do not sell health insurance, so have limited knowledge of the current status of that field.
Experience
Past/Present clients Families, professionals, small businesses, individuals.
Question Hi I was wondering if you would be able to look at a brief summary of my family situation and give me some suggestions.I want to get insurance but can u recomment some changes in what I presently have. I thank you.
I am married and have 3 childern (ages 9, 12, and 16) I just bought a waterfront home which is valued at 500,000 with a 300,000 mortgage. My jewrely is about 10,000. We have 3 cars a 2004 BMW, a 2002 Lexus and 1997 Jeep Wrangler. My husband works at a large manufacturing firm and earns about 125 K. I run a day care center from my home and earn about 45K. I don't have any employees.
My kids all go to private school - which costs me about 25 a year. We honestly have no savings or investments and almost no discretionary income at the end of the month. ( which is a main reason I am writing this!)
I met with a financial planner and they suggested on purchasing a 50,000 variable life policy for each of us as an investement. I think i am worried about the high vost of these policies
This is what is presently covered
property risks
Ho3 with no endorsements or riders, dwelling 300,000, liability 100,000, medical payments 2500/person, uninsured/underinsured motorist 100,000,collision and other than collision (100 deductible)
Personal risks:
Life - my husband employer paid group term 50,000, we both have 50,000 universal life policy
disability - mr. murphy - employer paid group policy (LTD with a 90 day wait with benefits to age 65) I have no coverage
Medical: My husband - employer paid Major Medical (family plan) myself - i have an individual plan and still pay premiums
I thank you for whatever you can give me!!
Answer Dilena, Dilena: What you need is not insurance advice. You need a financial advisor! Let's start with cash flow. You have no savings, no investments, no discretionary income at month's end. You do NOT need variable life insurance. You may not have the right kind of insurance with the Universal Life you own. You DO need a comprehensive plan to get you back on track from a spending, savings, investing and insurance standpoint. Here's what I recommend: 1. Go through a website (such as WiserAdviser.com) to find a financial advisor who is a REGISTERED INVESTMENT ADVISOR. Not a product pusher. (make SURE they are either state or local REGISTERED, not just an agent or broker 2. Look for earned *designations* that show that this person is enriching their mind as well as their pocketbook -- CLU (Chartered Life Underwriter, CHFC (Chartered Financial Consultant), CFP (Certified Financial Planner), or MSFS (Master of Science, Financial Services).
Write down all your monthly expenditures, and all income sources. Get your statements together from insurance, investments, etc. and go in together to this advisor. Most of them will give you a free initial consultation, just as a lawyer would. Get their *ADV Part II*, read it, and check out their credentials on NASD.com - click on "NASD Broker Check" to see if there are any disciplinary actions against them. Here's what will happen: He/she will work with you to develop a spending plan that meets the following requirements: it will enable you to build and protect assets and eliminate debt. It will help you pay greater attention to the needs of your family, such as what happens if you or your husband should die tomorrow. $50,000 of life insurance for a family of your income and size is terrbly insufficient. If you don't have the cash flow to sustain a UL policy, it's a great disservice to your family to waste the protection dollars they need on such an inadequate amount of coverage.
Two words to answer your question: Financial Advisor.
Sorry that thus was so strongly worded, but your inquiry really impacted me. You need advice and it will be worth every penny you pay for it, assuming the advisor is qualified. (A gray hair or two wouldn't hurt either!)
David S. Bowman, Jr. CLU
Registered Investment Advisor
