Except you work in the insurance field, or you are just an insurance-friendly person, tendency is for you to quickly skip this article when you observe that it belongs to the insurance category of this site. If I should ask why you don’t want to read the article, you would probably answer that you don’t want to talk or read about death.
Though that would translate to spinelessness on your part, knowing full well that the subject of death is unavoidable and we must all leave this world one day, I must still assure you that this piece is not about death. It is actually about living; and your child having a wonderful future.
Your guess is right, though. I want to talk about life insurance; but this time, about using life insurance to create a beautiful future for your child. It is not about your death. It’s about your living, and your child living too.
When you read Letter to My Son, you will notice that a life insurance plan can be arranged to take care of your child’s education in the event of your premature death or survival. That’s about making financial provision for your child’s sound education. Great idea!
But what happens after you have labored so much to give your child the best legacy – education? He is out of the university, he has his certificate in his hands, but something is still missing – he’s yet to start a life of his own. In order to do this, he needs a job. Sadly, he submits his “I beg to apply” to many organizations but all he receives is “no vacancy.” You give him notes to your friends, church members, and previous colleagues, begging on his behalf for a job without any success. Your child then becomes frustrated and you become helpless. Both of you become beggars without alms!
It then suddenly occurs to you that this child of yours can actually be on his own. He has a good certificate that can enable him set up his own show. As for the experience, all he needs is a short stint in the appropriate industry. And companies don’t mind engaging him for the experience – just for the experience; provided they won’t have to retain him for too long, and they don’t have to pay him a salary. Yes, you can do this for him. You have no problem with that. Your friends can easily arrange for his training in their organizations.
The boy is also happy with that. He even prefers to be on his own. He wants to be the Bill Gates or Richard Branson of this world. He has a dream. He has a burning fire inside of him. He actually wants his freedom. And he expects you to help out as a great parent. He needs you to help actualize his dream.
But you can’t, because something is absent. You don’t have the kind of money that can be used to set him up in business. So what happens? Well, you keep feeding him. You keep housing him. You keep paying his “school fees,” despite having graduated. The only difference now is that he is both the “student” and the “school” as well. You have a “baby adult” in your hand!
You have actually done well for your boy. You provided him with a good education, and I commend you for that. But you are now beginning to ask yourself, “of what use is this boy’s certificate that is not fetching him any money?” So painful; right?
Relax, my dear friend. What I’ve done here is to create a possible scenario for you. I have taken you on a journey into the future. You have seen what could happen when that son or daughter of yours graduates in the future. You also know that the world of paid employment is gradually disappearing. The future is now in each person’s hands.
Thank God you still have enough time. You can still do something to avoid the above situation, and I have a suggestion for you. It is a simple suggestion that will not create any horrible stress. All I want you to do is to pick up your phone and call an insurance agent. If you don’t know anyone, I’m here to help out; because life insurance is what I do for a living.
Please ask your life insurance man to arrange an insurance policy for you immediately. Tell him you want that policy to mature at the time your son will be graduating from the university. It doesn’t matter if he’s still in the secondary school as we speak. All you want to do is plan for his future. Now you have the capacity to fund his education; your salary can take care of that. But by the time your son is done with his higher education, you would have become a retiree. You will be depending on your pension so you won’t have the kind of money he needs to start his own business. Now is the time to plan for him.
One assurance I can give you is this: The insurance company will guarantee the payment of your chosen lump sum at the appropriate time in the future. But remember to name your child as the beneficiary. Don’t worry about whatever name the insurance company calls the product they are giving you. They can call it an “endowment” or “unemployment” policy. The name does not matter to you. All you know is that you are making a financial plan for your son’s post-education life. And to make sure it works, you will only be required to make regular payments which will not constitute any serious financial strain for you. This regular payment is called “premium” by the insurance companies and it can be paid monthly, quarterly, half-yearly, or yearly. It is a very convenient way of providing for the future.
At the agreed future date of payment, the money received from the life insurance company can be used to pay for your child’s new office place, buy the required equipment, and create a working capital for his new business. He then becomes a happy man. He has his life, and you have yours. Everybody is happy. Not only that, the boy is proud of his dad. He boasts to his friends, “My father is a wonderful man. He is truly a real man.”
Thank you for thanking me for this advice. But don’t worry about sending your credit card details. The advice is given free of charge. I’m here for you any day and every day.