I talk to people every day about life insurance. It is always a hypothetical conversation about how much life insurance you or your loved one would need if something happened. Most of the time, people purchase their life insurance, tuck it away and move on with life.
Unfortunately I have been reminded about life insurance in very personal ways these last few months. I have attended 4 funerals in the last 3 months. Now I’m not that old. I’m middle aged and feel way too young to be surrounded by so much death. Each of these situations reminded me of the importance of life insurance. Hopefully it may remind you why it is important to carry life insurance.
Funeral #1: A young veteran died at 21. He suffered from PTSD when he returned home from service. This was really tragic. He had purchased a home and had some school debt. His survivors were tragically broken. Fortunately, he had some life insurance, not just from the Army, but from a policy his parents purchased on him when he was young. Because his policy was in force for more than one year, suicide was covered and the company paid the claim. The family was able to pay for the funeral, pay off the mortgage and have a little left over.
Funeral #2: A business leader died suddenly at the age of 84. He had a legacy of 20 grandchildren and 4 great grand children. This funeral was less difficult than the first as this person lived a long life and was very intentional with his planning and legacy. He carried a significant amount of permanent insurance which will protect his widow as they will have a hefty estate tax bill when she dies.
Funeral #3: A recently retired business man died at the age of 68 from a long battle of Parkinson’s. This was a good example of the importance of planning. This friend suffered for years with Parkinson’s and dementia. Fortunately he carried a long term care policy that was able to pay for his wife to have help come in on a daily basis as he was unable to take care of himself. This helped him keep his dignity.
Funeral #4: A doctor at the age of 52 dropped dead of a heart attack leaving his wife and 2 elementary aged children. This funeral was very upsetting. Watching young children bury their father was heart wrenching. Fortunately he carried a significant amount of life insurance so his wife, a stay at home mom, can continue to take care of her kids, they can keep the house and continue to send their children to private school.