Will Your Legacy Be Hereditary Debt?

Guest post by ConsumersAdvocate.org

As parents, one of the most important lessons to pass along to your children (other than saying please and thank you and to always eat your vegetables) is how to stay out of debt and plan for the future.

This doesn’t require mastery of financial instruments – like currency futures and exotic derivatives. But knowing how to make a budget and stick to it, or how to choose the best IRAs and other retirement plans are essential to their future well-being and development.

Setting the Right Example

Unfortunately, children often learn the wrong lessons from the examples their parents set. For instance, how many four-letter words have your kids picked up from hearing you accidentally stepping on their Legos in the middle of the night on the way to the bathroom!

Bad fiscal habits are also surprisingly inheritable. In short, if you’re bad with money, it is more likely that your kids will be, too. If you’re in debt by the end of your life, it could become hereditary debt. If you leave debt to your children, it will be far more difficult for them to achieve a debt-free life, themselves.

3 Financial Identity Types

According to the decade-long Life Success research project, children fall into three categories when it comes to learned fiscal habits.

  • Followers: follow their parents’ example
  • Pathfinders: are interested in financial topics and find their own way
  • Drifters: don’t follow their parent’s example, but also don’t have any other strategy.

Parental Influence

Even though each child tends toward their own way of processing things, the researchers discovered that each identity style was strongly associated with a different level of parental guidance.

  • Children who had received some financial education, primarily modeled after their parents own financial habits identified as followers.
  • Children whose parents talked to them openly and frequently about finances and involved them in financial decisions identified as pathfinders.
  • Children who lacked these experiences identified as drifters.

Preventing Hereditary Debt with Life Insurance

One of the most important financial habits to pass on for preventing hereditary debt is to discuss and purchase term life insurance with your children. They learn that you can still be financially responsible to those who depend on you even after you die. Making sure your loved ones are cared for, the mortgage is paid off, and college expenses are covered ensures that heirs don’t inherit debt and thus breaks the chain of hereditary debt.

Infographic on how to secure your child's financial future

John Hancock introduces Aspire for People Living with Diabetes

John Hancock announces John Hancock Aspire with Vitality, a new, first of its kind term life insurance designed specifically for Americans living with diabetes, in collaboration with Verily, an Alphabet company, and digital healthcare company Onduo.

All John Hancock Aspire customers will also have access to an enhanced version of John Hancock Vitality along with potential to save up to 25% on their premiums.

John Hancock Aspire offers customers living with diabetes life insurance paired with an online program that provides coaching, clinical support, education, and rewards to help manage their health. 

Onduo Technology: Qualifying John Hancock Aspire customers with type 2 diabetes will be eligible to access Onduo’s virtual clinic and receive a blood glucose monitoring device. When used in conjunction with the Onduo app, it provides insights into the user’s diabetes management. Onduo’s virtual care team, made up of diabetes professionals, offers personalized guidance and support regarding diet, activity, lifestyle habits and medication management. Onduo users can earn points to further boost their overall Vitality rewards and lower their premiums.

“The life insurance industry hasn’t traditionally served people living with diabetes well. When we help customers manage their diabetes by providing virtual care, education, support, incentives and rewards, we’re not only creating value for them, but also for our industry and society as a whole. That’s why we’re thrilled to work with innovative industry leaders, Verily and Onduo, to offer access to people living with diabetes to this first-of-its-kind offering. It’s time our industry started delivering more tailor-made solutions that truly help our customers.” – Brooks Tingle, President and CEO of John Hancock.

“This dynamic partnership with John Hancock unlocks the full potential for the Onduo platform, empowering people living with Type 2 diabetes to co-produce their own health at home and in mobile environments and rewards them for doing so. Through this initiative, Verily and John Hancock are pushing the envelope on the role life insurance can play in both providing financial security and helping people live longer, healthier lives.” – Andy Conrad, CEO, Verily.

John Hancock Aspire will be available to customers on November 18, 2019.

Contact QualityTermLife to find out if Aspire is the right term life insurance for you. Schedule a Call