The Shadow
Dear Dave,
I’ve been listening to your show, and following the Baby Steps, for about a year. But I received some news from a family member recently, and I’m not sure what to tell them. One of my cousins just discovered she has cancer. She’s a single mom with two young kids, and it doesn’t sound like she has thought much about the future. What are the best steps she can take financially at this point to make sure her family is protected?
Jacki
Dear Jacki,
I’m truly sorry to hear about this. A cancer diagnosis is a scary thing, so please remember to pray for her and be there for her all you can.
Most of the time when folks ask if a person has their affairs in order, they’re usually referring to a few different questions. First, are you right with God? Then, do you have life insurance and a will? Another important thing is having all the paperwork of your life organized and in a safe location, so someone you trust can handle the details in a worst case scenario.
Everyone should have good term life insurance in place. My advice is to have a policy worth 10 to 12 times your annual income. When it comes to a will, make sure it’s state-specific. Probate and estate regulations aren’t federal laws, they’re state laws. So, any will should be drawn up according to guidelines for the state in which you live.
It’s probably the hardest thing to think about, I know, but arrangements should be made for any minor children. Sitting down to talk with two or three trusted family members, or close friends, to decide who will take them if the worst should happen is a good idea, too. Whoever is chosen for this responsibility should be a person who’s incredibly mature, caring and willing to love and raise these kids as if they were their very own.
Good luck, Jacki. I know this is a difficult time for your whole family. Be there for each other, pray a lot and hug on one another all you can. God bless you all.
— Dave
* Dave Ramsey is an eight-time national bestselling author, personal finance expert and host of
