In the Health World we have heard of things for years that are referred to as “Silent Killers”. By definition, these are things that may be slowly and or unexpectedly harming our health. Well, there appears to be a “Silent Killer” in my line of work as well that I have observed countless clients fall victim. This hidden EFFECT seems to be working its damage behind the scenes to our ability to reach some point where we can all stop working and enjoy spending more time with our loved ones. Inflation is the one thing I have the hardest time factoring for when helping clients with their insurance planning.
When I was young, we had Dime Stores. Now, we have Dollar Stores and stores that advertise their goods cost Five Dollars are below. I still pick up pennies but because they buy so little, a lot of folks just vacuum them up out of their cars when it is time to clean the inside of their vehicles. I still laugh at the Andy Griffith Show episode where Barney Fife is renting a room from Mrs. Mendelbright for the sum of just $6 per week. My guess is that felt the way that about $125.00 feels today. I still watch in amazement of how Gomer Pyle gets so upset with Barney at $5 fine for an illegal U-Turn on the “Citizens Arrest” episode, but I suppose that felt the way that spending $100.00 does today.
So, how do we defend ourselves from this unwanted thing called Inflation? A simple rule of thumb might be to just plan on needing TWICE as much of what you thought you would need to stop working. For Life Insurance, plan on buying two times the death benefit for final expenses that you think you will need. If you are buying life insurance and including the cost of a College Education for your children in the size of the policy you are getting, you might buy 4 times what you think you need today as tuition seems to be increasing to the Stars!
A secret defense against Inflation is doing your best to protect your present Health. The cost of prescriptions medications are increasing faster each year than the fire ant beds in my backyard! Lastly, I would plan on doubling or tripling the amount that you are planning on needing in case you have an extended health need. Long-term Care costs are another area where Inflation is quite obvious. My Long-term Care Policy I sold myself years ago is still the greatest thing I have ever spent a dollar on as far as dollars I spend on protecting myself and my family.
So let’s all do what Barney Fife said we should do to things that should be stopped right in their tracks (such as the effects of Inflation)—NIP IT! Just call our office at 706-778-2136 and make an appointment with Trent Perry if you need guidance on how to make your best plan of attack! Or CLICK HERE to reach out through our web site.