Phase 1 of The Escape Plan
Protect the people counting on you.
Everything you're building can be undone by one bad day. Life insurance, a will and a power of attorney aren't morbid — they're how you make sure your plan outlives an emergency.
What to have in place
Four things every family needs.
None of them are expensive. All of them are easy to put off. Don't.
Term life, not whole life
Buy term life insurance for 15 to 20 years and invest the difference. Whole life bundles insurance with a weak investment and charges you heavily for both. Insurance is for protection. Investing is for growth. Keep them separate.
Ten to twelve times your income
A good starting point is ten to twelve times your annual income, plus enough to clear your debts. If your family depends on your paycheck, they need to be able to replace it — not just bury you.
Write a will. Name a guardian.
Without a will, a court decides who raises your kids and who gets what. A basic will is one of the cheapest, most important documents you will ever sign. Do it this month.
Power of attorney and beneficiaries
Name someone who can make decisions if you can't. Then check the beneficiaries on every account and policy — they override your will, and an outdated one can send your money to the wrong person.
The gap most people miss
Your work policy is not your plan
If the only life insurance you have is the one that came with your job, there is a good chance you are underinsured and have no idea. Three reasons why.
01
It covers a fraction of what you need
Employer plans commonly run one to two times your salary, sometimes a flat amount like $50,000. The number your family actually needs is closer to ten to twelve times your income plus your debts. Run that math on your own paycheck and the gap shows up fast.
02
It walks out the door with the job
Quit, get laid off, or retire and the coverage usually ends with the paycheck. Now you are shopping for a policy older than you are today, and age is the one thing that always makes the price go up.
03
You do not own it
Your employer owns that policy. They can change it, reduce it, or drop it at renewal and you get a memo. A term policy you buy yourself is locked in for the full term no matter who signs your checks.
Keep the work policy. It is free money. Just do not mistake it for a plan.
Run your numbers
How much coverage does your family need?
Replace your income for the years they'd need it, clear what you owe, cover what's coming — then subtract what you already have. Rough numbers are fine.
Next step
Now find out what that coverage costs
Enter your ZIP below and compare real quotes from top carriers — without leaving this page.
Read more
Insurance, minus the sales pitch.
Where this fits
Protection starts in Phase 1.
Basic coverage, a will and a power of attorney come first. In Phase 5 you broaden it and add a trust.
Protect what you're building.
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