Good catch, anybody with a wife or kids should have a healthy policy. Not negotiable. It should pay off all your liabilities so they can be debt free plus a healthy number of years to cover the income loss. Set them up...
I'll throw in a healthy disability policy as well. I've seen guys get hurt and crumble their families and lively hood. A disability policy lets you ease into a sustainable lifestyle or it gives you a chance to recover. A five year policy is a good start.
Next is a living trust. That way you avoid probate and the assets automatically go to your loved ones. Decisions have been made in advance. I can't believe how many people over 50 I meet without living trusts. They have kids and grand kids. I've had my trust since I was 32?
Would you want to leave your family without any income and all your debts? Oh ya, and they can't touch your assets unless they are awarded in probate? Don't leave them that mess on top of your death...
This is where a financial advisor really earns their money in my mind. Asset protection and putting an umbrella over your loved ones.
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Todd
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