Friday, August 23, 2013

Big Problem most Preppers Overlook

Smart preparedness means getting ready for what’s likely to happen first, and take it from there moving down towards events that are less likely to happen. It makes no sense to go nuts over what you should do to be ready for EMPs and solar flares and not be ready for tornados while living in Central Texas. Likewise, it makes little sense to obsess over raiders and looters while overlooking your doctor´s advice about lowering your salt and fatty food intake to control your cholesterol and high blood pressure.
If there’s one thing we all have in common is that we’re all going to die sooner or later. 

Not a pleasant topic, but that’s that. Ideally we would all die in our sleep past out 90th birthday after having lived a wonder life and leaving an important legacy behind. As we all know, few things in life, (especially so death!) turn out ideally. Nothing we can do about that part, its just the way it is, but what about those left behind?
This is an email I got a couple days ago from one of my youtube viewers:

Hi Ferfal you know me as **** on YouTube.

 About 6 months ago my girlfriend died from a massive aortic aneurism she was only 30 years old and was 7.5 months pregnant with our son because of our age we never thought to get a will done for each of us it was a big mistake. Thankfully our son survived and is okay. Since we were only common law and had no wills or power of attorney I had to go to court for custody of my son and almost had to pay a thousand bucks for a DNA test. Also since she died and I've been looking after my son I've been stuck living off of parental leave which really sucks since its about 1/3 of what I made as the primary bread winner of my family. I go back to work in October and will be fine but life insurance would have been nice for my son and I to use as a buffer for the short term. 
I write this not for sympathy but as a warning for other preppers/survivalists I spent way to much time worrying about car crashes and wildfires and not about the possibility of a personal shtf scenario. Instead of getting our affairs in order just in case we pass away we concentrate on buying gear and stuff thinking that we will never die of natural causes and or shit luck. I think all people in the self reliance movement should at least have a will and if they can afford it life insurance to help any loved ones in the event of their demise.
Thanks bud

Reading an email like this feels like a hook to the liver but it makes a crucial point: Be ready for when you’re not there anymore.
While there’s nothing you can do about dying or not, you can at least ease the financial burden quite a bit with life insurance. You can make things easier for everyone with a will and leaving your life in order.

Quick pointers folks:

1)Get life insurance. Leave enough to pay off the mortgage and support the family until your youngest child is 21-25. If you’re somewhat young and in good health life insurance can be pretty cheap, and will make life a lot easier for your family if something happens to you. It can make the difference between your family somewhat getting by ok in spite of the loss or your entire family falling apart and ending up in poverty. Its crazy how many people may have their pets insured, but they aren’t insured themselves, and the premium price isn’t all that different!

2)NEVER lie or forget to mention anything when getting your life insurance. After you die, a team dedicated to finding ways to not pay will look into everything trying to uncover any lie or detail you didn’t mention. Anything at all that can be used to void your contract will be found and used against you. It happens all the time. 

3)READ you contract in detail. You had a beer and died in a car crash? Most companies will use that to avoid paying. I know of two such cases. Read the contract and if possible have your lawyer read it as well.

4)What’s worse than dying? Being left a vegetable for years, your family left to pay the hospital bill while the life insurance company doesnt pay a dime because well, you didn’t die. Even if you have no family or dependents you may want to look into getting critical illness cover in case you are sick/injured and cant work anymore to support yourself.

5)Write a will and leave a signed and dated copy with your lawyer and another with your family. Make your will as clear as possible explaining what your leave to each family member. The most simple will, a hand written Holograph will, can be made in seconds and it is valid. No lawyer or witness needed and it avoids a ton of problems:
I, John Smith, leave all my property to my daughter Jane Smith.
Singed John Smith,  place and date.
If you have children, name a guardian and an alternate guardian in your will. This will prevent what could possibly be a long, nasty family battle over the custody of your children.


Greek Caste System said...

Get a life insurance? What are you talking about?
All Greek insurance companies were loaded with Greek State Bonds!
Furthermore there is always the danger that any corrupt state in order to "save" these bankrupt companies (because they invested in GSB) will nationalize them and they will ask you for a 50% increase in payments because of "higher national interest".

shirley said...

Good idea!

Anonymous said...

Hey All, Senor Fiesta here.

Gotta side with Fernando here. Insurance is a form of prepping. Greek makes a good point, but what happens if the system doesn't break down and you die leaving your wife and kids to fend for themselves.

What are your preps? Insurance against something happening. If the system breaks down before you die, yes, you may get nothing. You can stop paying insurance at any time (just don't expect coverage) so they can't "make" you pay extra.

To further clarify what Fernando said; DO NOT buy anything but term life insurance. It's WAY cheaper (because if you survive the term, they pay out nothing). And you don't need insurance for your entire life. Just until you are in a better place financially and/or your kids are old enough to take care of the themselves. I was 42 when I got a term policy. I had high blood pressure and high cholesterol and my premium was still less than $90 a month for $750K policy.

But then, I wouldn't expect many people on here to think it's good advice. These type of sites are filled with people with massive amounts of distrust of the sytem and believe break down is inevitable.

Early in my professional career I worked for an insurance company. The salesmen don't care about what's best for you, they care about feeding their families, no matter what they say, buy term. Insurance companies on the whole will try to find a reason not to pay, but it's not as bad as most people think. They don't have time or manpower to delve to deeply into each claim. Any insurance company that denied any claims even remotely unfairly, would not be in business for long.

So all that said. Go out and get a TERM life insurance policy. Consider it part of your preps. And out of all your preps, it's probably the most probable prep in your "prep arsenal"

Live long and prosper.

Greek Caste System said...

@Senor Fiesta
You said:
"You can stop paying insurance at any time (just don't expect coverage) so they can't "make" you pay extra."
They can make a law that anybody must have an insurance.
In Greece having a car insurance is obligatory.
Now they are planning a law that any building must have insurance againt earthquake destruction!
Despite frequent earthquakes very few buildings in Greece collapse from such an event (1 to 2).
If they want money their imagination is limitless.

Anonymous said...

Senor Fiesta here.

Good points Greek Caste, but that doesn't mean you shouldn't have life insurance.

So you are saying life insurance is required in Greece?

I live in CA, so I know about required insurance. We are required to have auto insurance and I'm all for it. I have no problem with that. You want to drive, show you can cover any damages caused if you cause an accident.

You can refuse to have life insurance and that's fine. But me, I'll hang onto mine. If I die before the collapse (which is the likely scenario), my family will be able to pay off the mortgage with enough leftover to carry them until the kids are adult age and out of school. They'll already have whatever preps I put in place, what they won't have, is my income. If you have a family, life insurance is always a good idea (term only).