The Roaring Twenties
Okay. You are in your twenties and starting your career. Or, maybe your child, grandchild, sister or brother is in the work world at last. A job! Time to take care of all that stuff people must when they have responsibilities. The list is long: personal relationships, business relationships, rent money, transportation, food, clothing, fun money…
… and of course, life insurance. No? Not yet?
It really makes perfect sense to pick up a policy now. The price will never be cheaper. Huge amounts of cash could grow inside the policy over time. The death benefit will protect your future spouse and children, and help you get a mortgage or business loan.
Still not on the top of your hit list? There are reasons for that. Entrepreneur and author Jason Nazar talked recently in Forbes.com about the mindset people have in their twenties. He identified many advancements people can make in their thinking to get their lives together. By following his advice, it can become easier to make commitments that really pay off – such as buying a life insurance policy.
Here are some of his tips, and examples of how they can relate to this essential financial decision.
Jason Tip #1: “Time is Not a Limitless Commodity – I so rarely find young professionals that have a heightened sense of urgency to get to the next level. In our 20s we think we have all the time in the world to A) figure it out and B) get what we want. Time is the only treasure we start off with in abundance, and can never get back. Make the most of the opportunities you have today, because there will be a time when you have no more of it.” (1)
Steve comment: This advice is extremely relevant to the purchase of life insurance. The mortality clock is ticking, even though you do not hear it so loudly when you are young. Do not take for granted your mortality, your insurability, or your eligibility for the lowest rate available. One never knows.
Jason Tip #2: “You Need At Least 3 Professional Mentors – The most guaranteed path to success is to emulate those who’ve achieved what you seek. You should always have at least 3 people you call mentors who are where you want to be. Their free guidance and counsel will be the most priceless gift you can receive. (TIP: ‘The Secret to Finding and Keeping Mentors’) Pick an Idol & Act ‘As If’ – You may not know what to do, but your professional idol does. I often coach my employees to pick the businessperson they most admire, and act ‘as if.’ If you were (fill in the blank) how would he or she carry themselves, make decisions, organize his/her day, accomplish goals? You’ve got to fake it until you make it, so it’s better to fake it as the most accomplished person you could imagine. (Shout out to Tony Robbins for the tip).”
Steve comment: Your life insurance broker should be a key person on your financial team. Make sure he is a specialist in this product. He should be an able guide into the mysterious world of life insurance underwriting, and how to qualify for the best coverage.(1)
Jason Tip #3: “Spend 25% Less Than You Make – When your material needs meet or exceed your income, you’re sabotaging your ability to really make it big. Don’t shackle yourself with golden handcuffs (a fancy car or an expensive apartment). Be willing and able to take 20% less in the short term, if it could mean 200% more earning potential. You’re nothing more than penny wise and pound-foolish if you pass up an amazing new career opportunity to keep an extra little bit of income. No matter how much money you make, spend 25% less to support your life. It’s a guaranteed formula to be less stressed and to always have the flexibility to pursue your dreams.” (1)
Steve comment: A life insurance benefit costs pennies on the dollar. It can have extremely strong guarantees. It is one of the few products that really helps you sleep at night because it can secure those dreams.
(1) Nazar, Jason. “20 Things 20-Year-Olds Don’t Get.” Forbes. Forbes Magazine, 23 July 2013. Web. 30 July 2013.