The best advice I received this summer came from Karyn Miller and Luke Mosch of Hinkle Insurance. While chatting about our children, the end of summer, college expenses, etcetera, Karyn shared a story about one of their clients. This gentleman is getting ready to retire. He has done everything you are supposed to do financially by trying to save for retirement, while helping kids through school (which financial guru, Suze Orman, says is the correct order in which to do things).
This father co-signed his child’s college loans, who graduated and regularly paid on the college debt. A few years in, she was in a horrendous car accident. Now this poor man and his wife have to bury their child and, as if that’s not hard enough, they are also required to pay on those school loans. Just as he was about to retire, he is now saddled with $100,000 of debt.
Karyn explains that when they signed for the loans, if they had taken out a $100,000 term life insurance policy for the life of the loan, at less than an average of $120.00 a year, the father would have ended up with the cash to pay off the debt and follow through with his retirement plans.
We make sure our kids have everything they need for their dorm room. We buy them new computers and buy AppleCare to protect them, and dorm insurance in case Johnny’s stereo is stolen, but the real insurance we should be buying is the life insurance to cover those school loans. For less than the cost of a Twin XL bed set, you can protect everyone, and, as Luke explains, at the end of the term policy (one or 15 years depending on the length of the loan) your child as an an adult can roll the term life into a whole life policy, making it easier for them to now protect themselves and their own family.
Toaster oven? Check. Laptop? Check. Cleaning supplies, school supplies, desk lamp? All check. Now add to that list a term life insurance policy from Karyn or Luke at Hinkle Insurance who, because they are brokers, can find the cheapest and best policy for your needs. Protect and take care of you and your kids. Protect and take care of your financial stability.