I have kept 6 months’ gross income in cash handy (for years), just in case. It really helped when I bought my new place and it always is a great leverage point (Other drivers’ Insurance company: “we can’t pay for your repairs immediately — you will have to front them.” Me: Done.)
Now I am stuck with a few hundred K (from selling the old place) and have no idea what to do with it.
But I am old school: zero unsecured debt, let the bank carry the new debt (3.5% interest). Pay cash for everything or DO WITHOUT — a concept unknown to many of today’s young adults.
The policies appreciate over time and they can either borrow against the interest, cash it out tax free for school, or convert it to a larger policy to cover them as adults.
Have $50K on each of my children.
My cousin died in Jr. High. My nephew died at 6 months old. And while I pray that my children will live to ripe old ages and put my sorry hide into the ground, experience has taught me that things do not always work out as planned.
Another good policy to have is an umbrella policy for liability...picks up at 300,000 and covers you to 2 million. Relatively inexpensive.
But I have this to say about the Long Tern Nursing Care coverage. He says buy it by the time you’re 60. Well in our immediate family, that idea hasn’t worked out. We’re in our 50’s and between my sis and BIL and hubby and myself, 4 out of 4 would’nt qualify.
They are very strict about pre-existing conditions and between us we have MS, protate cancer, breast cancer, and hip replacement/arthritis (before the age of 60)...so we all fall outside those insurable. It’s not that we’d need it by 60, it’s just that we wouldn’t have qualified unless we picked it up in or mid 40’s.