Wednesday, May 02, 2007

One Woman's Story

Some dates are memorable; weddings, the birth of children, and diagnosis of cancer.

The latter is a life-changing event. One day we are "normal" relatively healthy people and the next we have been given a potential death sentence.

Alison Renfrew lives in New Zealand.

Different land, different culture, same issues women (and men) face anywhere.

Major issues for everyone diagnosed with cancer are: "If our income stops how do we make ends meet? How do we pay the mortgage?", and in our case: "How do we run the business if the chief isn't around?"

For us, one option was to sell the business and Richard would look after me, but what could be worse for the caregiver than if their loved one dies and there is no business or a job to return to?

Most folks never get to this stage, until it is too late. Hardly a day goes by when I don't get a call from someone wanting insurance for an event that has already happened.

I am an advocate of leveraged debt for wealth creation. If you borrow money for investments, you must prepare for an unanticipated event or you could be in trouble, and that means insurance.

Banks don't care if you have cancer, have had a stroke, or suffer a nervous breakdown. If you don't honour your obligations, they will request full payment of loans. If you cannot meet these payments, there will be a fire sale of your assets, which could be sold for discounts of 30%-70%.

Fire sale of your assets.

Most folks don't want insurance. What they want is a way to protect their income and other cash assets.

What do you have to lose?

Everything you own.
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