“There’s always money in the banana stand”
Last week, I randomly looked over at Mrs. AE and said these words. Don’t worry, I am not losing my mind, and it wasn’t after I had enjoyed 13 of MN’s finest craft beers either. I wanted to title this post something that she wouldn’t forget.
In the event of my untimely demise, I am sending her to this blog post to help her with her finances from beyond the grave. Dark? Yep. Don’t like writing about it at all. But as the primary Personal Finance Pro in the house, I don’t want Mrs. AE to worry about a damn thing financially.
For those of you wondering “There is always money in the banana stand” is from a TV show called Arrested Development. They keep a sizable amount of emergency cash in the walls of a frozen banana stand (that ultimately burns down). Please note, we do not own a Banana Stand and our emergency cash is not in our walls…..
What is our Banana Stand?
Life insurance! Our banana stand is a combination of life insurance through our employer and Haven Life.
When it was just Mrs. AE and I we were probably under-insured from a Life Insurance standpoint. Once Little AE came along we decided to significantly increase our coverage in case something terrible happens. Long story short, we wanted peace of mind.
The insurance through our employer is equivalent to our yearly salary and is 100% picked up by our employer.
I first heard about Haven Life on the Stacking Benjamins podcast (which happens to be my favorite PF podcast) and figured I would give them a shot and……………WOW.
In 17 Minutes, I was approved for a 20 year, $500,000 Term Life Insurance Policy.
We have spent over 17 minutes on hold with my cable company before. Needless to say, my mind was blown. I was expecting to have some back and fourth sorting through questions and a few hoops to jump through. Submitted the application May 31st and the policy was completed on June 2nd. Beautiful.
I was so impressed I reached out to Haven Life and joined their referral program. If you are looking for a Term Life policy click this link to start exploring their Insurance Offerings. Similar to the rest of the products/services on my Recommended Products page, I use Haven Life myself and wouldn’t recommend it if it wasn’t awesome (trust me, I am not an easy customer to please either). Full disclosure – I may receive compensation if you use my referral link.
Don’t Put it Off!
While it can be a daunting task, please don’t put Financial Emergency planning off. You don’t want to get caught and regret not spending an hour sorting through your insurance requirements. Peace of mind is worth a little effort.
Why I opt for Term Life Insurance
Simple, easy, cheap and I don’t believe in the Whole Life insurance investment idea. I will stick with investing in 401ks, Roth IRAs, HSAs and Real Estate 🙂
By the time our 20-year policies expire, we shouldn’t require a huge life insurance policy if we keep at our current trajectory. We are treating it more as a bridge to Financial Independence than something we feel like we will need past our 50s.
If you want to read an excellent post regarding Whole Life Insurance – the White Coat Investor has a great one: Debunking The Myths Of Whole Life Insurance
I have a few co-workers that have Whole Life policies, and ironically one of them is the guy who recently prompted this test string:
Almost bit my tongue off, I have expressed my thoughts on Whole Life insurance, but they trust their family friend. Sorry people, your cousin might be a great guy but he may be screwing you over. Will get him on the right path one day.
Alright, Mrs. AE I promised to make your world easier
This is where our Financial Emergency and Planning make this entire section easy!
- All our investment accounts are linked through our Personal Capital login (you know where we keep the passwords)
- Here is our target Portfolio Allocation today
- If invested you could live for 25-30 years on the insurance payout without working and send Little AE to college
Assuming you don’t want to be a DIY investor, head over to Vanguard and sign up for their Personal Advisor Services. They have a really low fee for an advisor (.30) and should be able to help you coordinate all the cash coming your way.
I’m sure some of my blogging friends will help you out if you need advice (also have them keep this blog alive forever, I want to haunt people through it).
Probably my least favorite post ever, and I hope Mrs. AE never has to read it.