FIVE NEW YEAR’S (LEGAL) RESOLUTIONS

Here are five (5) LEGAL resolutions can help yourself and your family.

1.    Shoot a video. Make a videotape of all of your household goods, just by walking through the house and opening closets and attics. If you suffer loss due to tornado, fire, theft or earthquake (optional coverage) you can easily fill out claim forms. You will be housed in an apartment or hotel your insurance company places you in, and you can just play and pause the video. See Proverbs 27:23. Be sure to store the video with family or friends and not in your home!

2.    Buy more UM coverage. UM stands for Uninsured/Under-insured Motorists coverage. On your car, you should carry at least $100,000.00 of this coverage. It is very cheap, compared to what you may receive. It only pays you, your family or those in your car if they are injured or killed by an unknown, under-insured or uninsured motorist. See 1 Timothy 5:8. It is vital. If you do nothing else, do this.

3.    Check your credit. You can do this for free, courtesy of our government, once per year per agency at www.annualcreditreport.com.  And never co-sign!  See Proverbs 17:18. This credit check will help you spot identity theft and open cards you may have forgotten about.

4.    Check your house and land for hazards. Are there rotten trees overhanging your driveway? Do you have a good fence around your pool? Is your dog properly secured?  Are your steps solid, and your stair railings tight? Are there holes in your yard? Is there plenty of lighting available at night? If you have cattle, are your fences in good shape without overhanging limbs or unlocked gates? See Exodus 21:33. Even though you are not automatically liable for injuries on your property, an ounce of prevention stops most injuries.

5.     Do you have life insurance? Many do not. It is common for grief-stricken widows to have to work two jobs to pay the funeral off. Is that your plan for your loved ones? See Proverbs 13:22. Buy insurance, and term is usually cheapest.

These few pointers may make a real difference for you this year. And, they are not nearly as hard as a resolution to lose some weight!

Life Insurance

Life Insurance is an afterthought for many. It was different for me.

Originally, when I was getting married, I contacted my agent to purchase a policy. My reasoning was simple: I was about be married to my beautiful bride and she may get pregnant. If so, that child is mine and I must still provide for him or her even if something happened to me. She could get pregnant and I could die not even knowing she was a few weeks along.

I am not sure why that occurred to me then, but I have been told before I think a little differently sometimes.

When I explained all this to my agent, he said "If everyone thought like you, I'd be rich!"

At any rate, 15 1/2 years later I have bought more insurance to protect my wife and the kids if I am the first to go see Jesus.

Generally, I strongly prefer TERM insurance. Only under unusual circumstances would I recommend whole life or one of its progeny.

Term is usually so cheap, it is a good buy. I strongly recommend its purchase while you are healthy enough to buy it cheap. A good rule of thumb on amount might be:

With all your debts paid off, could they live well on 5% annualized.

So, with a paid for house, and no notes, $500,000 policy may throw off 40 to 50K per year. Most people can sustain a nice lifestyle without debt and that income, plus any possible earnings. However, for a little more per month, a 1,000,000 is even more preferable. A goal is to allow your survivors to supplement their live though interest without touching the principal.

It can only be bought cheaply when you are young and healthy. So this is the time to think about it. And, be honest on the application, or they will deny your coverage, even after you die in some cases.