An Important Life Insurance Question; Mixing Family and Business

How late is too late?

Reader Question: How late is too late to get life insurance?

It’s pretty easy to get term life insurance – the only kind of life insurance I recommend – up until around age 70. Depending on your overall health situation, there are a few affordable policies available past that point. But once you get into your seventies and beyond it can be difficult to find reasonably priced coverage. I recommend that most people have 10 to 12 times their annual income wrapped up in a good, level term life insurance policy.

Family and Business

 Reader Question: My husband and I own a small business. One of our relatives asked for a job recently, and we have reservations about hiring him because there are several dysfunctional relationships within our extended family. Are we being mean?

Having a small business doesn’t give relatives a free pass to employment. As entrepreneurs, you have the right and responsibility to do what’s best for your company.

Ask yourself a few questions: Would you hire this person if they weren’t part of the family? Would you hire this person because they would make a good team member? If the answers are no, then you don’t hire them — period.

Be kind about the situation, because there may be some bruised feelings. But the bottom line is you have to do what’s best for your business, your immediate family, and your team.

Dave Ramsey

Dave is the author of The New York Times best-selling book Financial Peace. He is also the host of the nationally syndicated The Dave Ramsey Show, and is a regular guest on television. All of his financial counseling is based on biblical truths. You can hear Dave from 9 a.m. to 11 a.m., weekdays, on WLWI 1440 AM or online at www.daveramsey.com. Send your questions to askdave@daveramsey.com. He resides with his wife Sharon and their three children, Denise, Rachel, and Daniel, in Nashville, Tennessee.

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